NATIONAL NEWS - Energy regulator Nersa will decide on Wednesday what Eskom is entitled to in terms of revenue, which will form the basis upon which tariffs will be calculated.
The Electricity Regulation Act provides that the allowable revenue must be set to enable an efficient licencee – in this case Eskom – to recover the cost of its service as well as a reasonable return on assets.
The allowable revenue forms the basis for the calculation of consumer tariffs. At a recent meeting of Nersa’s electricity subcommittee, much of the discussion centred on the regulatory asset base (RAB) that forms the basis for the calculation of such reasonable return.
This committee makes recommendations to the energy regulator meeting, where the final determination will be made tomorrow.
During the previous tariff period (MYPD4), covering the period 2019-20 to 2021-22, the RAB was R875 billion.
