Thursday, 08 October 2020

Pretoria: The National Energy Regulator of South Africa (NERSA) has been granted leave to appeal a High Court decision relating to Eskom’s fourth Multi-Year Price Determination (MYPD4).

“The National Energy Regulator of South Africa welcomes the granting of leave to appeal against the High Court of South Africa (Gauteng Division) judgment of 28 July 2020, which substituted the Energy Regulator’s decision on Eskom’s MYPD4 with its own,” said the energy regulator.

In granting the leave to appeal, Judge Kathree-Setiloane indicated that the High Court of South Africa (Gauteng Division) is of the view that there are reasonable prospects of success, and that another court would come to a different decision.

The 28 July 2020 High Court decision allowed for a phased recovery of R69 billion in equity injections.

The court had ruled that the injections had been illegally deducted by NERSA on Eskom’s fourth Multi-Year Price Determination (MYPD4) for the 2019/20, 2020/21 and 2021/22 financial years.

In a statement on Wednesday, NERSA said the appeal will be heard by the Supreme Court of Appeal.

“The matter is of critical importance to the electricity supply industry and the economy of South Africa, as well as for the creation of certainty to investors,” said the regulator.

Eskom has noted the court’s decision.

“Eskom acknowledges and respects the decision made by Judge Kathree-Setiloane to grant the NERSA leave to appeal the High Court decision on the timing of recovery of the misappropriated R69 billion of government equity.”

Chief Financial Officer at Eskom, Calib Cassim, has agreed that the matter is of significant importance to the country.

“It would be beneficial for a Superior Court to provide an order on the recovery of the misappropriated equity. Eskom is committed to a speedy outcome of this process, as any further delay in resolving this matter continues to burden the economy of the country.” said Eskom.