Nersa fights back in battle with Eskom over tariffs

Judgment has been reserved in the court battle between Eskom and Nersa. Eskom is pleading with the courts to allow it to hike electricity tariffs. Courtesy #DStv403

PRETORIA - Nersa says it has a duty to also consider consumers and the economy in granting tariff increases.

It's accused Eskom of refusing to cut operating costs, including its staff complement so that it can operate within approved tariffs.

Nersa and Eskom have been battling it out in the High Court in Pretoria over tariff increases.

READ: Nersa wants Tshwane to explain proposed tarrif hikes

Nersa believes this court application is a waste of the court’s time and it says if the 2018/19 tariff increase of 5,23-percent is inadequate, this should be part of a retrospective process to recover monies due to over- or under-spending.

It says this shouldn’t be a court process.

Adding that tariffs are only ever finalised once the recovery process called the regulatory clearing process is over.

READ: Eskom, Nersa fight it out in court over tariffs

Nersa says it has a duty to perform a balancing act and it can't be forced to only consider Eskom’s needs and not the public's when considering tariffs.

The energy regulator didn’t take kindly to Eskom’s argument that the tariffs were predetermined and that Nersa could have manipulated the process to get the required result.

Eskom wants the 2018/19 tariffs set aside and to be granted leave to apply afresh for a tariff for that year retrospectively.

Judgment has been reserved.

Source
eNCA