REAL ECONOMY: ELECTRICITY
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.
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