Concerns raised over Eskom’s running costs

Concerns have been raised about the running costs at Eskom being passed on to customers.

Picture: Reinart Toerien/EWN.

JOHANNESBURG - Concerns have been raised about the running costs at Eskom being passed on to customers with the National Energy Regulator of South Africa (Nersa) set to review its decision to approve an electricity tariff hike.

This week the High Court set aside a tariff increase of 9.4 percent calling it unlawful and adding that correct procedures weren't followed.

Nersa approved the application which resulted in the hike being implemented in April.

Now the regulator will have to reconsider its decision, with an announcement expected in the next 24 hours.

Energy expert Chris Yelland says Nersa will have to decide what is an appropriate figure.

"Eskom is not allowed to pass through to the customer costs that are imprudently and inefficiently incurred. It is the job of the regulator to ensure that Eskom does not do this. A judge pointed out that a particular IPT cost is the result of its own failings."