Public hearings on Eskom’s regulatory clearing account commence

April 16th, 2018, Published in Articles: EE Publishers, Articles: Energize

Eskom is scheduled to make presentations as the National Energy Regulator of South Africa (Nersa) conducts public hearings into the power utility’s application in terms of the regulatory clearing account (RCA) balance for the second, third and fourth year (2014/15; 2015/16 and 2016/17 period) of the third multi-year price determination (MYPD3), totalling R66,6-billion. The hearings will take place in various places between 16 April and 11 May 2018. The first session will take place in Cape Town.

The RCA process is entrenched in Nersa’s MYPD methodology and is a globally-accepted regulatory principle which reconciles variances between the projected and actual revenue and costs incurred by Eskom for certain elements. The RCA mechanism allows the utility to adjust for the over- or under-recovery to ensure that both the power utility Eskom and consumers are treated fairly. The under- or over-recovery is then catered for through the electricity tariffs in the following year or subsequent years.

Contact Eskom, Tel 011 800-3378, mediadesk@eskom.co.za