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Eskom wins appeal bid against Nersa over 2018/19 tariff hike

Eskom can now file a new application within 60 days to recover the costs next year.

Eskom's Megawatt Park in Johannesburg. Picture: EWN.

JOHANNESBURG - Eskom has won a High Court bid to appeal a decision by the National Energy Regulator of South Africa that prevented the utility from effecting a 15% tariff hike in 2018/19.

As a result of that decision, Eskom was unable to recover R27 billion in costs last year.

The court said that the decision was procedurally unfair, irrational and unreasonable.

Eskom can now file a new application within 60 days to recover the costs next year.

GM for regulation Hasha Tlhotlhalemaje explained: "It means that the consumer is going to pay for the value that it's getting because these were efficient costs and it's not going to be the taxpayer that's going to pay more. So we're trying to recover our efficient costs. This will not happen this financial year coming next, which is the 2020/21 financial year. Any adjustments will happen at a later stage."