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The National Energy Regulator (NERSA) announced today that at its meeting held on 27 July 2017, the Energy Regulator decided that no condonation will be granted of Eskom’s request to deviate from meeting certain requirements of the Multi-Year Price Determination (MYPD) Methodology and the Minimum Information Requirements for Tariff Application (MIRTA), with the exception of the Valuation of Regulatory Asset Base (RAB) and Information on Deferred Debits and Credits.

On 27 March 2017, NERSA received an application from Eskom, requesting condonation of Eskom’s request to deviate from meeting certain requirements of the MYPD Methodology and MIRTA for its one-year (2018/19) revenue application. Eskom requested exemption from providing the following information as required by the MYPD: RAB, Primary Energy (disaggregated coal volumes, coal handling and water costs), and Research and Development (conducting consultation).

Eskom also requested exemption from providing the following MIRTA information: segmented cash flow statements, split of sales revenues between regulated and non-regulated industries, projected ten-year sales forecast, disaggregated line items such as RAB, coal purchases and burn, environmental levies and deferred debits and credits.

The condonation regarding the Valuation of RAB was granted in respect of Eskom’s one-year (2018/19) revenue application. However, the Energy Regulator has instructed Eskom to revalue its regulatory asset base in time for its next MYPD application. Condonation regarding Information on Deferred Debits and Credits [balance in the Regulatory Clearing Account (RCA)] was granted since there is no decision yet on the RCA balance.

The Energy Regulator has given Eskom thirty (30) calendar days from the date of the decision (27 July 2017) to comply with the MYPD Methodology and the MIRTA requirements where condonation has not been granted.

The decision and Reasons for Decision is available on NERSA’s website at www.nersa.org.za under Regulator Decisions > Electricity.

Issued by NERSA