NERSA reaches R54bn settlement with Eskom over electricity price hikes

CAPE TOWN - Consumers could be forking out more for electricity after the National Energy Regulator of South Africa (NERSA) reached a R54 billion settlement with Eskom related to electricity price increases.

NERSA said the settlement comes after Eskom launched a judicial review challenging NERSA's original revenue decision.

Earlier this year, NERSA granted Eskom increased revenues over the next three financial years after the energy utility cited a revenue shortfall of R107 billion.

Eskom then lodged a judicial review of NERSA's decision, prompting the R54 billion settlement after NERSA admitted errors in its calculations.

NERSA spokesperson Charles Hlebela: "After rectifying the identified error, NERSA concluded that Eskom was entitled to an additional R54 billion over the three-year MYPD6 period." 

Hlebela said that due to the process being under judicial review, NERSA could not undertake a public participation process.

"This settlement will only be effective once it's been made an order of the court, which has not yet been secured. It is also important to indicate that there will be no additional price increase for the current 2025/2016 financial year."    

Western Cape Premier Alan Winde, along with the South African Federation of Trade Unions (SAFTU), have rejected the settlement, saying it could not go unchallenged.