Court Orders Nersa to Process Eskom’s Revenue Application for the 2023 Financial Year

The North Gauteng High Court has ordered the National Energy Regulator of South Africa (NERSA) to process Eskom’s application and to make a revenue decision for the Financial Year 2023, which begins on 01 April 2022. 

The judgment, handed down by Judge Jody Kollapen on Friday, granted Eskom the relief to overturn it sought in terms of “Part A” of its court application.

This revenue decision will be based on the application made by Eskom to Nersa on 2 June. 

In the judgement, the high court confirmed that this methodology remains valid, until replaced by an alternative process.

Eskom’s Hasha Tlhotlhalemaje said:  “The decision by the High Court comes as a relief as it will contribute to the stability of the electricity industry and thereby the economy of the country.” 

Eskom made the revenue application in accordance with the prevailing methodology as published and approved by NERSA in 2016, the Multi-Year Price Determination (MYPD) methodology.

In implementing the court judgement, the High Court ordered Nersa to follow a timetable which will allow it to then approve the detailed tariffs, in accordance with the NERSA Eskom Retail Tariff and Structural Adjustment (ERTSA) methodology and the tabling in Parliament by 15 March 2022. 

Revised tariffs and prices will be implemented from 1 April 2022 for non-municipal customers and on 01 July for municipal customers.