The National Energy Regulator of South Africa (NERSA) has briefed Parliament on the steps it is taking following a R54 billion miscalculation in Eskom’s revenue application. The update comes as Eskom pursues a judicial review of the regulator’s revised determination.
Speaking to the Portfolio Committee on Electricity and Energy on September 10 NERSA Chairperson Thembani Bukula said the error was linked to issues with depreciation calculations, asset transfers and cumulative balance principles. He said internal auditing and quality assurance processes did not identify the mistake due to changes in key staff.
“Usually we come before the committee with our heads high but this time with our heads bowed,” Bukula said.
An employee had been suspended, and investigations were under way to determine whether further action was needed, Bukula said. He added that NERSA required additional resources and skilled personnel to prevent similar errors in future determinations.
Electricity and Energy Minister Kgosientsho Ramokgopa said the incident demonstrated the need to capacitate NERSA as the country moved from a single-utility model to a more competitive electricity market.
Eskom has challenged NERSA’s revised revenue determination in court. A ruling on the matter is still pending.
