Eskom will wait for the regulator’s reasons for its determination of a 5,23% tariff increase, before it takes any decisions to challenge it.
According to Fin24, utility deputy spokesperson Dikatso Mothae, followed reports that Eskom was considering a court review of the National Energy Regulator of South Africa’s (Nersa) decision.
Mothae confirmed that Eskom would wait for the regulator’s reasons for the decision to determine what impact it will have on the business and the decide on the way forward.
Eskom said in December, it was delaying the release of its interim financial results, as it was reviewing the impact of the 5,23% increase and to allow its new board to review its financials.
However, Eskom confirmed that they are committed to release the results by 31 January, to meet the JSE’s debt listing requirements.
Eskom is within its rights to challenge Nersa’s decision. “In terms of the National Energy Regulator Act, any person may institute proceedings in the High Court to review the decision in accordance with the Promotion of Administrative Justice Act,” Eskom said.
Energy analyst and managing director of EE Publishers, Chris Yelland, explained to Fin24 that the courts would have the authority to overturn the decision. However, all this depends on the reasons of Nersa’s determination.
Yellend confirms that “Nersa is legally obliged to give reasons for its determination, but does not have to do it at the time of the determination.”
Nersa head of communications Charles Hlebela told Fin24 via email correspondence that regulator was finalizing internal regulatory procaesses before it will publish the reasons.