ESKOM HOLDINGS SOC LIMITED - Nersa's position on High Court Ruling
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Nersa's position on High Court Ruling
ESKOM HOLDINGS SOC LTD
JSE CODE: BIESKM
MEDIA STATEMENT
26 August 2015
Nersa media statement dated 25 August 2016 refers
NERSA POSITION ON NORTH GAUTENG HIGH COURT RULING REGARDING ITS
DECISION TO APPROVE ESKOM’S MULTI-YEAR PRICE DETERMINATION
(MYPD3) REGULATORY CLEARING ACCOUNT FOR 2013/14 FINANCIAL YEAR
The National Energy Regulator (NERSA) today announced that it will be appealing the
North Gauteng High Court judgement delivered on 16 August 2016 regarding NERSA’s
earlier decision on the approval of Eskom’s Multi-Year Price Determination (MYPD 3)
Regulatory Clearing Account (RCA) for the 2013/14 financial year.
The decision under review concerns NERSA’s approval of the RCA application for the
tariff year 2013/14, which culminated in a 9.4% increase in the average tariff for
standard customers for the 2016/17 financial year.
NERSA is of the view that the judgement is flawed. It has also created a hierarchy of
issues in the application of the MYPD methodology without considering the objective of
the methodology and how the RCA is decided.
Therefore, NERSA will be appealing the judgement on the grounds of it being premised
on erroneous information, a non-implementable position, as well as its substitution of
NERSA’s decision of 2014.
It is believed that the appeal will create certainty with regard to the regulatory framework
as there will be an approved tariff in place during the appeal process. It will also allow an
opportunity to clarify issues raised in the judgement.
The option to appeal is considered to be the most effective manner to remedy the
situation created by the judgement while ensuring that regulatory certainty is sustained
through the most available legal means without violating the contents of law and
judgement.
Enquiries
Ms Wanda Langenhoven
Acting Head of Communications
Tel: 012 401 4600
Fax: 012 401 4700
Cell: 083 306 3402
Email: wanda.langenhoven@nersa.org.za
Eskom Holdings SOC Ltd enquiries
Francois Venter
011800 4050
Email: francois.venter@eskom.co.za
Date: 26/08/2016 02:54:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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