Nersa appeal reason ‘convoluted’
ENERGY REGULATOR SEEKS TO SAVE ESKOM R10bn IN PAYBACK
THE National Energy Regulator of South Africa (Nersa) will today decide whether to challenge a court ruling that could cost Eskom billions of rands.
Energy analyst Chris Yelland said the stakes were high because if Nersa loses the court case, the cash-strapped Eskom would be required to pay back up to R10billion to customers.
Yelland spoke after the Nersa electricity subcommittee met in Pretoria yesterday and decided to recommend to the regulator’s board whether it should appeal the North Gauteng High Court ruling when it meets today.
Last Tuesday, the court set aside a decision by Nersa to grant the parastatal a 9.4% tariff increase for the 2013/14 financial year.
The court judgment was in favour of Nelson Mandela Bay energy intensive businesses and the Nelson Mandela Bay Business Chamber. Both had applied for the hike to be set aside.
Nersa’s regulatory committee member, Thembani Bukula, said it was the electricity subcommittee’s view that the judge considered points that were irrelevant when making the judgment.
Bukula said the recommendation would be made to the Nersa board to challenge the matter in the Supreme Court of Appeal.
“The judgment in the form that it is, there is nothing that we can do to remit, cure, rectify or remedy what has been there, and therefore on those grounds, we want to appeal,” said Bukula.
He said there was no point in having a judgment against Nersa when the issues raised against the regulator were not curable.
Yelland said the judgment raises serious questions about how Nersa treated the consumer.
“In general, Nersa has a good reputation of regulating in the interest of customers but this particular judgment has raised concerns about the care Nersa has for the customers,” Yelland said.
“But this is the first time Nersa has been challenged in court and the judgment is strongly critical of the way Eskom and Nersa treat their customers.
“The judgment says Nersa has not advised customers in a quarterly report on the prices that were going to be implemented by Eskom.
“If Nersa, according to the judgment, was going to deviate from the standard rules, it should have informed the customers.”
Yelland added that Nersa’s decision to file an appeal sounded convoluted.