Eskom launches challenge to Nersa’s rejection of revenue application

Heavily indebted Eskom has started court proceedings to review the regulator’s rejection of a price plan into 2025 that outlines how much the utility can charge electricity consumers.

The National Energy Regulator of SA (Nersa) on September 30 called for a pricing methodology review and discarded the so-called MYPD 5 revenue application of Eskom, which is unprofitable and struggles under about R400bn of debt. “This is impossible both from a legal process and timing point of view,” the utility had said.

The regulator and Eskom have brought a number of disputes to court over what the company can charge for electricity.

In rejecting the utility’s plan that runs through the 2024/2025 financial year, Nersa said it started a consultation process in the development of a new methodology “that will ensure sustainable electricity prices”. A spokesperson for the regulator did not immediately reply to a message seeking comment. 

The latest court action “is the only available option to avoid extremely serious and negative consequences for Eskom and by necessary consequence to the National Treasury,” the utility said. 

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