DA: Statement by Sejomothopo Motau, Democratic Alliance shadow minister of energy, on Nersa (14/03/2010)

14th March 2010

On Friday, together with Shadow Deputy Minister of Energy David Ross MP, I met with the National Energy Regulator of South Africa (Nersa) to discuss what appeared to be significant problems in the adjudication of Eskom's tariff application with a view to review the decision. Crucially, Nersa informed us that the electricity tariff decision is still open for review, if compelling reasons can be brought before Nersa. The DA has in fact brought a number of these issues before Nersa and the regulator has committed that they would answer the queries of the DA by way of formal response within 7 days.

After receipt of the document, the DA will be able to decide whether there are legitimate technical grounds to call for a review of the decision.
The stakes are certainly high enough to be extremely vigilant - if there has been any fault in the decision by Nersa, then it is imperative that action be taken. It should be noted that the fight is not against Nersa - adjudication on electricity tariffs is tricky after all - but Eskom who has brought the application and which has a sordid history of obfuscation and blatant lies.

The meeting with Nersa was indeed very productive and issues such as the independence of the institution and the transparency of its decision-making were discussed. The institution must be commended for its willingness to engage with stakeholders.