The Constitutional Court has dismissed an application by Borbet SA and others for leave to appeal the decision of the Supreme Court of Appeal (SCA) which affirmed the National Energy Regulator of South Africa’s (Nersa’s) decision to allow Eskom’s application for a tariff adjustment in relation to the third multi-year price determination (MYPD3) methodology.

The Constitutional Court dismissed Borbet’s application on the basis that the application ‘bears no prospects of success.’

The implication of the Constitutional Court’s judgment is that the SCA judgment stands as the final decision in relation to the original application by Borbet to review the Nersa decision of 1 March 2016. The regulatory clearing account (RCA) tariff adjustment that was approved by Nersa for the first year (2013/14) of the MYPD3, which was effected through adjusting the tariff for the March 2016/17 financial year remains applicable.

This means that Eskom is not barred from making future RCA applications for electricity price adjustments to Nersa in relation to the MYPD3. The ruling also clears the path for Nersa to process Eskom’s RCA submissions for the 2014/15, 2015/16 and 2016/17 financial years.

 

Issued by Eskom