STATE-OWNED electricity utility Eskom has approached the Gauteng High Court to have the regulator’s recent decision to reject its revenue application for the period 2022/23 to 2024/25 set aside for being “patently irrational and unlawful”.
Eskom approached the court this week for a review of the National Energy Regulator of South Africa’s (Nersa’s) September 30 decision to reject its latest application on the basis that the methodology Nersa used to determine Eskom’s allowable revenue had expired and would be replaced by a new methodology, which was currently the subject of a stakeholder consultation process.
Nersa, which released a consultation paper on a possible new methodology on September 24, argues that the current methodology has not provided price stability and that a new approach is also required considering changes under way in the electricity supply industry, including the impending unbundling of Eskom.
The utility has agreed to participate in the review
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