R10bn Eskom-Nersa settlement opens way for double-digit hike on April 1

The National Energy Regulator of South Africa (Nersa) and Eskom have reached an agreement to add R10-billion to Eskom’s allowable revenue in 2021/22, to be recovered through the tariff, pending the outcome of an appeal of a 2020 High Court ruling directing the regulator to immediately add back R23-billion of a larger R69-billion equity injection illegally deducted from the utility’s allowable revenue. The settlement was confirmed in a February 15 court order made by Justice Joseph Raulinga, who, on January 29, heard Eskom’s application to have the High Court order executed pending Nersa’s appeal to the Supreme Court of Appeal (SCA).