NERSA media statement on Eskom’s High Court Application.

Kindly find attached the media statement from NERSA following Eskom’s High Court Application.

As a way of background, Eskom had its three-year pricing application rejected by NERSA. This application was done in line with the old pricing methodology and subsequently, NERSA requested that Eskom makes a one-year tariff pricing application using the newly published methodology. Worth noting is that the new methodology was not opened for public commentary and input. This has certain implications, particularly for rural clients as the “subsidy” may fall away. This will mean that agriculture may see a steep increase in tariffs owing to being at the end of the long line. Another permutation could be single pricing for municipalities and may leave agriculture in a disadvantaged position.

The next steps include stakeholder engagements currently happening and public hearings that will take place from 01 November 2021 and we strongly recommend that Agri SA affiliates participate in these. Due to Covid 19 restrictions, public hearings will be conducted virtually. Provision will be made for physical public hearings in the Western Cape and KwaZulu Natal. More information will be shared on these.

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Sien hiermee aangeheg NERSA se mediaverklaring an aanleiding van Eskom se hooggeregshofaansoek.

Om meer agtergrond te gee, NERSA het Eskom se driejarige prysaansoek van die hand gewys. Hierdie aansoek is gedoen in ooreenstemming met die ou prysmetodologie waarna NERSA versoek het dat Eskom die nuut gepubliseerde metode gebruik vir ‘n eenjarige tariefprysaansoek. Wat opmerkend is dat die nuwe metodologie nie vir openbare kommentaar en insette bekengestel was nie. Daar is sekere implikasies, veral vir plattelandse kliënte, aangesien die ‘subsidie’ moontlik kan wegval. Dit beteken dat landbou ‘n skerp styging in tariewe kan verwag aangesien die sektor meestal aan die einde van ‘n lang landlyn gevestig is. ‘n Ander permutasie kan ‘n enkele prys vir munisipaliteite wees wat landbou in ‘n benadeelde posisie kan agterlaat.

Die volgende stappe behels die betrokkenheid van belanghebbendes en openbare verhore wat vanaf 01 November 2021 sal plaasvind. Ons beveel sterk aan dat Agri SA se filiale aan hierdie proses deelneem. As gevolg van Covid -19 beperkings, sal openbare verhore virtueel gehou word. Daar sal wel voorsiening gemaak word vir fisiese openbare verhore in die Wes -Kaap en KwaZulu Natal. Meer inligting sal hieroor beskibaar gestel word.

Media-Statement-Eskoms-High-Court-Application-to-review-MYPD-5-decision.