Eskom will not be getting the 25 percent tariff hike it requested, the National Energy Regulator of South Africa (Nersa) said on Monday.
The application did not provide the mechanism on how the proposed increase, if granted, will be implemented in the current financial year in a manner that is consistent with the requirement of the municipal financial act 2003.— Jacob Modise, Nersa chairperson
Modise says Eskom can re-apply or just add the information it excluded from the last application.
But Nersa says if it succeeds a second time, it would only affect the changes in the 2016/2017 financial year.
Scroll down to listen to The Money Show presenter Bruce Whitfield's interview of Chris Yelland, Energy Expert and Managing Editor at EE Publishers.
I’ve been told that Eskom could have their re-application ready within a month or two.— Chris Yelland, Managing Editor at EE Publishers
The current leadership shows hubris that is unwarranted in the light of their current performance.— Chris Yelland, Managing Editor at EE Publishers
Eskom doesn’t understand the regulatory process.— Chris Yelland, Managing Editor at EE Publishers
Molefe’s threat is a red herring. Eskom does not have a short-term financial crisis.— Chris Yelland, Managing Editor at EE Publishers