Eskom says will continue battle to hike electricity prices

Eskom is seeking relief from Nersa's multi-year price determination decision, which would see tariffs increase by just over 8% in the current financial year and 5.2% in the next one.

FILE: Eskom offices at Megawatt Park in Johannesburg. Picture: EWN

JOHANNESBURG - Eskom on Monday said while it respected the High Court’s decision declaring its matter against the National Energy Regulator of South Africa (Nersa) as not urgent, there were still merits to its case.

The court in Pretoria has dismissed the power company's application to have the matter heard on an urgent basis.

Eskom is seeking relief from Nersa's multi-year price determination decision, which would see tariffs increase by just over 8% in the current financial year and 5.2% in the next one.

The utility is arguing the decision was ill-informed and could have adverse effects on its cash flow.

At the heart of the matter, is a R23 billion transaction from government, which Eskom believed Nersa has incorrectly recorded as revenue.

The utility said the amount was an equity injection and therefore should not be included in calculations to determine how much the state-owned enterprise could recoup through tariffs hikes.

While the court has ruled the issue was not urgent, Eskom's Sikonathi Mantshantsha said the matter had not been put to bed.

“It must also be noted that the judge indeed does seem to think that this is a matter that must be debated in court.”

Eskom maintained it would continue its fight to have Nersa's decision reviewed and set aside.