ELECTRICITY
Eskom constantly falling short in revenue collection, says Nersa
Eskom has perpetually failed to collect the revenues allowed by the National Energy Regulator of SA (Nersa) while its expenditure has continued to exceed that determined by the regulator, Nersa says. Nersa officials briefed Parliament’s energy portfolio committee on Tuesday on Eskom’s revenue application for 2018-19. They noted that over the past four years Eskom had not been able to recover the revenue allowed by Nersa. In 2013-14, the shortfall in revenue collected as against revenue approved was 7,8%, in 2014-15 10,6%, in 2015-16 9,5% and in 2016-17 10,8%. "Although Eskom has been experiencing constraints in revenue collection, their costs have been increasing by an annual average of 16%. Eskom’s biggest cost overruns have been on their capital expenditures." Eskom applied for a 19.9% tariff increase based on expected revenues of R220bn but Nersa approved a 5.23% hike on expected revenue of R190bn. The regulator allowed expenditure of R51bn as against the R62bn proposed by Eskom....
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.