If battered South African power utility Eskom is getting its requested price increase, it won’t be right now. NERSA (the National Energy Regulator of South Africa) has seen its last meeting of the year come and go without making a call.
It would be tempting to think that the delay has something to do with former Eskom CEO André de Ruyter stepping down from his position but that doesn’t appear to be the case.
NERSA, there is no decision
Instead, the reason given for the further delay is that more time is needed. That is despite yesterday’s meeting being the deadline set after the last time more time was needed. According to the subcommittee, “Certain numbers didn’t tally, and the regulator was asked to expand the work. The work still needs to be done. There are vast areas that need improvement.”
Apparently, it’ll take about a day and a half to sort out whichever work is incomplete. There are doubts about that timeline but the regulator has to reach a decision, one way or the other, by 24 December.
Despite the delay and despite the utility’s poor performance of late, it’s likely that this increase will be granted. Whether NERSA’s approval is in part or in full is the only thing that’s in doubt right now. As to when that will happen… it should be any day now. Maybe. We’ll see.
Source: BusinessTech
