Business Unity South Africa (Busa) has urged the National Energy Regulator of South Africa (Nersa) to suspend its methodology for setting power tariffs and to grant Eskom only inflation-linked increases until the electricity supply industry has been restructured. In a presentation during Gauteng leg of a nationwide public hearings process, Busa’s Martin Kingston said that, while the principles of the methodology were sound, “it may be appropriate to suspend it until such time as the electricity supply industry is restructured, especially as tariff setting is open to manipulation until return on the regulatory asset base (RAB) is fully recognised”.
