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Eskom Holdings SOC Limited v National Energy Regulator of South Africa and Others (74870/2019) [2020] ZAGPJHC 168

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Eskom Holdings SOC Limited v National Energy Regulator of South Africa and Others (74870/2019) [2020] ZAGPJHC 168

31st July 2020

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[1] This is a review application in terms of the Promotion of the Administrative Justice Act 3 of 2000 ("PAJA") for the review and setting aside of a decision taken by the First Respondent, the National Energy Regulator of South Africa ("NERSA") in relation to an application made by the Applicant, Eskom Holdings SOC Limited ("Eskom") on 14 September 2018, for the approval of allowable revenue that would be reflected in electricity tariffs for the financial years of 2019/20, 2020/21 and 2021/22 ("the 2019/2022 application"). In this application, Eskom sought approval of:

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1.1 Total Allowable Revenue of R219bn for financial year 2019/20, which would have translated into a tariff increase of approximately 15% to standard tariff customers.

1.2 Total Allowable Revenue of R252bn for financial year 2020/21, which would have translated into a tariff increase of approximately 15% to standard tariff customers.

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1.3 Total Allowable Revenue of R291bn for financial year 2021/22, which would have translated into a tariff increase of approximately 15% to standard tariff customers.

[2] On 9 October 2019, NERSA published its reasons for its decision ("the 2019/2022 decision"). NERSA approved:

2.1 Total Allowable Revenue of R206bn for financial year 2019/20, which translates into a 9.41% tariff increase to standard tariff customers.

2.2 Total Allowable Revenue of R222bn for financial year 2020/21, which translates into an 8.1% tariff increase to standard tariff customers.

2.3 Total Allowable Revenue of R233bn for financial year 2021/22, which translates into a 5.22% tariff increase to standard tariff customers with an average standard tariff of R116.72.

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