No threat of City Power debt cutoffs by Eskom
Some reports had suggested this may be the route Eskom will take as the government entities dispute the amounts owed to each other.
But the Johannesburg metro's electricity provider says mediation by the Electricity Minister is helping resolve the impasse.
"There is no issue between City Power and Eskom, we are working together," said City Power spokesperson Isaac Mangena.
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The Citizen
5 hours ago
- The Citizen
Nersa's mistakes will hit you hard
Eskom gave a presentation to Nersa, proposing the number of tariffs be reduced from 10 to three. The courts have ruled in favour of Eskom in almost all of its applications against Nersa, and the trend looks set to continue. Picture: Shutterstock Moneyweb has learnt that consumers will have to cough up at least R40 billion more for Eskom following a settlement between the utility and the energy regulator Nersa. This pertains to mistakes Nersa's made in several decisions regarding Eskom's revenue and tariffs. This amount may increase as Eskom has launched a fresh challenge to Nersa's latest decisions regarding the utility's revenue and tariffs for the current and the next two financial years. Eskom's court application is the latest in a string of challenges to Nersa decisions, almost all ruled in favour of Eskom. Moneyweb has learnt that several such applications were settled between the two parties in May. This was not widely communicated at the time. The settlement, which was made an order of the court, pertains to clawbacks spanning the financial years 2015 to 2021. ALSO READ: Ekurhuleni metro and Nersa lock horns over electricity tariff discrepancy Clawbacks The clawback mechanism is designed to retrospectively compensate either the utility or its customers for variations in the assumptions underlying the revenue determination, such as sales volumes. The compensation is done by adjusting electricity tariffs in following years. Eskom disputed the amount Nersa decided it was entitled to claw back in each year from 2015 to 2021. Following the settlement Eskom is entitled to recover in total R40 billion more from consumers for underrecovery over the period due to mistakes made by Nersa. In terms of the order, Nersa will decide on the timing of this recovery. ALSO READ: Nersa's municipal tariff process flawed, says Sapoa Nersa still making mistakes? Eskom now alleges that Nersa's latest revenue and tariff determination for the current and next two financial years is also flawed. This will be on the agenda of Nersa's electricity subcommittee during a special meeting on Wednesday (16 July). It follows an application by Eskom to the Gauteng Division of the High Court to have the decision reviewed and set aside. Nersa announced in January that it had approved revenues of R384.6 billion for Eskom for the current financial year, which translated to an average percentage increase of 12.74%. This took effect on 1 April. ALSO READ: The silent 77.5% rise of your electricity bill The allowable revenue approved for 2026/7 is R409.5 billion, which translates to an average increase of 5.36% and for 2027/8 it is R435.8 billion, which translates to an average increase of 6.19%. This is considerably lower than the amounts Eskom applied for, which would have meant increases of 36.15%, 11.81%, and 9.1% in the three consecutive years. Following Nersa's publication of the reason for its decision early last month, Eskom filed an application to have the decision reviewed and set aside specifically regarding Nersa's treatment of the Regulatory Asset Base (RAB). Moneyweb has reliably learnt that Nersa has not yet indicated whether it will oppose the application. Presumably the meeting on Wednesday will make a recommendation to the electricity regulator, which will then take a final decision. The formulation of the agenda point however indicates that Nersa may have accepted Eskom's argument and is open to settling the matter. It reads: 'Correction of error on the Eskom sixth multi-year price determination decision (MYPD6) Regulatory Asset Base section and proposed settlement.' ALSO READ: Nersa approves 12.7% electricity tariff hike for Eskom Eskom's arguments In an affidavit supporting its court application, Eskom CFO Calib Cassim sets out in detail – some of it quite technical – the mistakes that Eskom contends Nersa has made. This includes attaching a zero value to several operational power stations, including Koeberg. He shows that the value attached to the RAB is key to determining the returns Eskom is entitled to – and that Nersa's downward adjustments of the RAB in each of the three years dealt with in the tariff application cost the utility about R30 billion in total. Cassim says that Nersa, in taking the decision, exceeded its powers and acted inconsistently with its own methodology and with an earlier court order dealing with the same subject. ALSO READ: 30% electricity tariff increase is a reality, says Erasa He states that Nersa's decision is irrational and unreasonable. 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The Citizen
6 hours ago
- The Citizen
Here's Eskom's load reduction schedule for Gauteng this week
Eskom's load reduction schedule indicates that several areas across Gauteng will continue to face scheduled power cuts during peak hours. Gauteng residents continue to face an uneven experience with load reduction, as Eskom-serviced areas continue to face scheduled power cuts. Eskom conducts a daily load reduction programme that runs from Monday to Sunday. Consumers can expect approximately six and five hours of outages, with different time slots for different areas. Affected areas under Eskom's load reduction schedule The current Eskom load reduction schedule shows that numerous areas across Gauteng will continue to experience scheduled power cuts during peak periods. Areas experiencing morning load reduction between 5am and 9am include Vereeniging, Beverly Hills, and Soweto. Other affected areas include Orlando East, Riverside, and various settlements across Gauteng. Evening load reduction between 5pm and 10pm impacts regions including Monise, Mokoena, Mavimbela, Protea South, Chiawelo and surrounding areas. Other affected zones include Hlongwane, Moseleke, Tshongweni, Mapanga, Nhlapo, and various extensions of Orange Farm and Soweto. The schedule operates on a seven-day rotation, with different areas affected on different days of the week, giving residents some predictability about when they might experience power outages. This week, the affected areas include: Cuba Graceland Garankuwa Vryburg Dobsonville Naledi Ivory Park Extensions Zuma Sebokeng To see if your area is affected, click on or download the document below Load reduction schedule: Monday, 14 July – Sunday, 20 July. READ NEXT: Eskom hammers another nail in load shedding coffin
Eyewitness News
8 hours ago
- Eyewitness News
City Power continues with revenue collection drive
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