Eskom: Tariff hike request likely to be spread over a few years

The power utility wants to recover about R66 billion through the regulatory clearing account, which works by allowing Eskom to apply to recover a shortfall in revenue in a given year.

FILE: Eskom's Megawatt Park offices in Sunninghill. Picture: EWN

JOHANNESBURG - Eskom says there's a great possibility that its request for a tariff increase to recover a multi-billion rand shortfall will be spread out over a number of years.

The power utility wants to recover about R66 billion through the regulatory clearing account, which works by allowing Eskom to apply to recover a shortfall in revenue in a given year.

A number of parties said the RCA process was flawed but now the process will start afresh, giving Eskom another opportunity to recover the money that was lost due to a number of factors, including overspending on coal and lower than expected sales.

Eskom's Khulu Phasiwe says that they don't expect to recover all this money in one year.

"Eskom has already conditioned itself that we're not going to get this money all in one go. The regulator will do its own calculations, come to a particular figure. The regulator has already gone on record saying that this money, whatever it will be, it will be phased out over a period of three to five years."