Eskom is challenging the South African energy regulator in court over a tariff increase the state-owned utility says isn’t sufficient, Mining Weekly reported, citing court papers.
The debt-laden company is asking the high court to review a price increase awarded by the National Energy Regulator of South Africa, which Eskom said doesn’t consider the cost of generating electricity, the website said.
The utility will argue that delays in processing so-called regulatory clearing accounts during the past three tariff applications played a role in worsening its liquidity position.
Eskom was granted an electricity price increase of 9.4% in April, less than the 17% it had requested. The utility will raise tariffs by 8.1% next year and 5.2% the year after. — (c) 2019 Bloomberg LP