Eskom welcomes decision

Cape Town - Eskom on Wednesday welcomed a decision by the National Energy Regulator of SA (Nersa) to allow it to recover close to R8bn in losses from consumers.

"Eskom cannot determine what the impact will be on specific customer categories as the regulator will still decide on how this balance will be liquidated," it said in a statement.

Price determinations

Earlier on Wednesday Nersa announced it approved the regulatory clearing account balance of R7.8bn for under recoveries during the multi-year-determination process 2.

The RCA is a regulatory mechanism that allows Eskom to adjust for over-or under-recovery of revenue, as initial price determinations are based on projections and assumptions.

"What is positive at this stage is that a robust process was followed in conducting the RCA process, which is an illustration of the application of the regulatory mechanism that supports the implementation of the Electricity Regulation Act," Eskom acting CEO Collin Matjila said.

Recover money

"Eskom looks forward to continue working with Nersa on further RCA submission in accordance with the revised MYPD methodology, as published during December 2012."

Nersa said the actual percentage tariff hike had yet to be determined.

The regulator would draft an implementation plan that would determine exactly how Eskom would recover the money.