Secret Settlement Deal

NERSA: Regulator Admits Mistake in Determining Eskom's Revenue

- Antoinette Slabbert

Energy regulator Nersa confirmed on Wednesday that it had entered into a settlement with Eskom, following the mistakes it made in determining the utility's revenue for the current and next two financial years.

As a result, consumers will have to cough up R54 billion more through higher electricity tariffs, phased in over several years.

Nersa has already estimated how much the increases announced in January will be adjusted upward.

This is the second such settlement since May, which brings the total additional revenue due to Eskom to correct Nersa's mistakes, to R94 billion - which is to be paid by electricity users.

Nersa's statement follows Moneyweb's report on Tuesday, about decisions the regulator had been taking behind closed doors, which affect consumer accounts.

While maintaining its silence about the earlier R40 billion settlement that was made a court order, Nersa estimated the price impact of the latest settlement as: