Nersa to appeal ruling on power price hike

The National Energy Regulator of SA (Nersa) will appeal the high court ruling setting aside its decision earlier this year to grant Eskom a 9.4% electricity tariff hike for 2016, it said yesterday.

Nersa is of the view that the judgment is flawed.

It has also created a hierarchy of issues in the application of the MYPD [multi-year Price Determination] methodology without considering the objective of the methodology, the organisation said in a statement.

The decision to appeal was made on the grounds that the judgment being premised on erroneous information, a nonimplementable position, as well as its substitution of Nersa’s 2014 decision.

The appeal would allow Nersa an opportunity to clarify issues raised in the judgment, it said.

“The option to appeal is considered to be the most effective manner to remedy the situation created by the judgment, while ensuring that regulatory certainty is sustained through the most available legal means without violating the contents of law and judgment.”

Last week, Judge Cynthia Pretorius granted an application against Eskom brought by businesses from the Eastern Cape’s Nelson Mandela Bay and a local business chamber.

The applicants cited irregularities by Nersa during the tariff increase approval process.

Eskom’s 9.4% tariff increase kicked in in April this year. – African News Agency