CAPE TOWN – Eskom will await the energy regulator’s reasons for its determination of a 5.23% tariff hike, before any decisions are taken to challenge it. This is according to the power utility’s deputy spokesperson Dikatso Mothae, following reports that Eskom was considering a court review of the National Energy Regulator of South Africa’s (NERSA) decision.
Mothae also said that Eskom would wait for the reasons of the regulator to determine what the impact will have on the business. Eskom said it was delaying the release of its interim financial results in December.
The review is for the period ended September 30, 2017 as it was reviewing the impact of the 5.23% increase. It will allow its new board to review its financials. Eskom made the announcement on Monday afternoon, that it is committed to releasing the results by January 31. This is in order to meet the JSE’s debt listing requirements. Eskom has every right to challenge Nersa’s decision. “In terms of the National Energy Regulator Act, any person may institute proceedings in the High Court to review the decision in accordance with the Promotion of Administrative Justice Act,” Eskom said.
Chris Yelland, Energy analyst and MD of EE Publishers explained that the courts would have the authority to overturn the decision, but that all depends on the reasons of Nersa’s determination.