The 'secret' Eskom Deal

TARIFFS: CONSUMERS MAY PAY BILLIONS MORE AFTER NERSA SETTLEMENT

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All indications are that the energy regulator Nersa has once again entered a settlement with Eskom regarding its tariffs, which will cost consumers billions. As it did in May, the regulator is again doing this in secret.

Moneyweb wrote in July that Nersa would, at a special meeting of its electricity sub-committee, make a recommendation to the regulator – its highest decision-making body – about a "correction of error" in its determination of Eskom's revenue for the current and the next two years.

This was listed as an agenda point for the meeting scheduled for 16 July.

It pertained to the Regulatory Asset Base, which Nersa miscalculated, according to Eskom. Moneyweb learnt that Eskom had taken Nersa's decision on review in the high court and, according to court documents, Eskom argued Nersa's mistake resulted in a revenue award that was R30 billion lower than it was entitled to.

By putting this on the publicly available agenda, the impression was created that Nersa accepted it was at fault and was prepared to correct it.