Eskom respects court decision on electricity tariffs
Eskom says it would respect the High Court’s decision to reject its urgent bid to increase electricity tariff by 16% over the next two years.
The heavily indebted power utility however added that it was encouraged by the judge’s statement that there was merit to its case.
It says the judge indicated that the National Energy Regulator of South Africa (Nersa) violated the basic principle of accounting by treating an equity injection as revenue.
Eskom brought an urgent application to have Nersa’s increases of 8.10% and 5.22% over the next two years set aside.
Eskom argues that without the increases, it could default on payments to lenders, triggering the immediate payment of its national debt burden of R318 billion guaranteed by government.
The Federation of Unions of South Africa (Fedusa) has proposed that Eskom be placed under business rescue as opposed to using public servants pension funds to bailout the ailing power utility.
Fedusa says it rejects the proposal brought forward by the Congress of South African Trade Unions (Cosatu) which suggests that the Public Investment Corporation should step in to take on R250 billion of Eskom’s debt.
The Public Investment Corporation manages R2 trillion of government employees Pension Fund.
Fedusa says putting Eskom under business rescue will ensure that outside and undue political interference in its operations and governance is prevented.