JOHANNESBURG, August 25 (ANA) – 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 percent electricity tariff hike for 2016, it said on Thursday.
“Nersa is of the view that the judgement 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 and how the RCA [Regulatory Clearing Account],†the organisation said in a statement.
The decision to appeal was on the grounds that the judgement being premised on erroneous information, a non-implementable position, as well as its substitution of Nersa’s 2014 decision. The appeal would allow Nersa an opportunity to clarify issues raised in the judgement, it said.
“The option to appeal is considered to be the most effective manner to remedy the situation created by the judgement while ensuring that regulatory certainty is sustained through the most available legal means without violating the contents of law and judgement.â€
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 percent tariff increase kicked in in April this year.
– African News Agency (ANA)
