Listen to the customer?

One of the most hotly contested technical points debated during the National Energy Regulator of South Africa’s (Nersa’s) nationwide hearings into Eskom’s application for allowable revenue of R863-billion for the coming three-year period related to the elasticity of electricity demand. Eskom is requesting allowable revenue of R219-billion for 2019/20, R252-billion for 2020/21 and R291-billion for 2021/22, which, if granted, would translate to tariff increases of 17.1%, 15.4% and 15.5% for the three years included in the fourth multiyear price determination period. These hikes do not include the 4.41% Regulatory Clearing Account (RCA) increase already scheduled for introduction form April 1 and which will be sustained in the tariff base for four years. Not do they accommodate any additional claw-back that could arise from Nersa’s evaluation of a further RCA application for the 2017/18 financial year.