South Africa: Nersa approves 2.2% tariff increase

The National Energy Regulator of South Africa (Nersa) on 23 February approved allowable revenue for state utility Eskom of R205bn ($15.7bn), equivalent to an average tariff increase of 2.2%, for the year 2017-18. The figure includes a return for Eskom of R33.7bn and costs for purchasing power from independent power producers worth R23bn. Nersa has seen a period of transition after its last regulatory clearing account (RCA) determination – the method by which Eskom can recoup prudently incurred costs – was overturned by Gauteng High Court (AE 330/5).