The National Energy Regulator of South Africa (Nersa) has announced that it would not grant Eskom the 9.58% tariff increase.
Eskom Executive Thava Govender says: “We note the decision made by Nersa, and we will study the details of the determination and consult with the shareholder before we can comment further on its impact”.
The initial request was for the selective reopener for the third multi-year price determination (MYPD 3) for the period 1 July 2015 to 31 March 2016.
According to the utillity, the increase was to fund higher usage of open cycle gas turbines (OCGTs) and cover the cost of buying capacity from the short-term power purchase programme (STPPP) in order to limit the severity of load shedding and the impact on the economy.
Nersa has in the interim ordered Eskom to re-apply.
Public Enterprise Minister Lynne Brown is closely monitoring the situation.