Eskom wins court decision against regulator ruling on costs

accreditation

Eskom, South Africa’s indebted power utility, has won a High Court decision against the National Energy Regulator of South Africa, which had blocked the utility from recovering R27 billion in costs in the 2019 financial year, company spokesperson Sikonathi Mantshantsha said.

The power company can now file a new application to recover the costs.

Reuters reported that the court found that Nersa's treatment of coal and employee costs resulted in the deduction of billions of rands from Eskom's projected revenue.

Decisions taken by Nersa were "procedurally unfair, irrational and unreasonable", according to court documents, Reuters reported.

Eskom has a debt burden of more than R454 billion.

It applied to Nersa to implement electricity tariff hikes of 16.6% and 16.7% over the next two years, but Nersa only granted Eskom increases of 8.1% and 5.2% - a decision which is currently disputed in the courts.


We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
16.35
-0.1%
Rand - Pound
19.79
-0.2%
Rand - Euro
17.05
-0.3%
Rand - Aus dollar
11.23
-1.0%
Rand - Yen
0.12
-0.0%
Gold
1,808.82
-0.1%
Silver
19.98
+0.4%
Palladium
1,934.00
-1.6%
Platinum
887.00
-0.6%
Brent Crude
111.63
+2.3%
Top 40
60,902
+2.1%
All Share
67,025
+2.0%
Resource 10
63,634
+3.8%
Industrial 25
81,244
+1.2%
Financial 15
14,837
+1.8%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot