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Cape Town – Eskom will abide by the decision made by the National Energy Regulator (Nersa) that it is to provide the regulator with extensive information on its operations, including the cost of coal.
In a statement issued late on Friday, the power utility said it will update its revenue application, with assumptions, as guided by Nersa for the relevant areas where condonation was not granted and submit this to Nersa by 25 August 2017.
“Eskom has always provided Nersa with extensive information for its analysis. Eskom is committed to continue this practice.”
The statement follows after Nersa said it would not grant Eskom condonation to deviate from certain requirements in its tariff application.
The only exception Nersa made was that Eskom did not have to make available information on its Valuation of Regulatory Asset Base (RAB) and Information on Deferred Debits and Credits.
READ: Nersa orders Eskom to share secret information, including cost of coal
Nersa has given Eskom until August 31 to provide the necessary information.
Eskom had requested earlier this year to deviate from meeting certain requirements of the multi-year price determination (MYPD) methodology and the minimum information requirements for tariff application (MIRTA).
In its statement, the power utility said Nersa guides Eskom in making assumptions for certain of the MYPD methodology and MIRTA requirements that could not be met.
“As an example, Eskom is not in a position to attribute burn costs and volumes to particular contract types. This is due to coal stockpiles not being distinguished in accordance with each coal contract type. Nersa has required Eskom to use the purchase ratio for the coal burn rate. This will be done for regulatory purposes, which varies from the accounting treatment of coal costs,” the statement read.
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