The National Energy Regulator of South Africa (Nersa) will appear before Parliamentary Portfolio Committee on Energy and Electricity on Wednesday, over the R54-billion error made in its recent Eskom tariff determination.
The Democratic Alliance (DA) took credit for the development, citing its intervention and formal demand to Parliament.
On Monday, the party wrote to Nersa chairperson Thembani Bukula demanding public accountability and answers. Last week, it formally requested Portfolio Committee on Energy and Electricity chairperson Nonkosi Queenie Mvana to urgently convene an inquiry into Nersa’s internal processes and its fitness to regulate the country’s energy sector.
Nersa agreed to a court order that Eskom can collect an extra R54-billion in tariffs over the next few years, as a result of errors made by the regulator in its sixth multiyear price determination revenue decision.
DA spokesperson on Electricity and Energy Kevin Mileham said the summons was a crucial first step in holding the regulator to account in public.
“The DA will use the parliamentary hearing next week to ensure that this promise of accountability is more than just empty words. The South African public cannot be used as an ATM to fund the incompetence of Eskom and Nersa. We will fight to ensure that those responsible are held accountable and that the public is protected from this kind of regulatory failure ever again,” he said.
The DA received a letter of reply from Bukula, which conceded to errors in Nersa’s calculations, citing a “clerical error” and a “version control issue”.
The letter to the DA also said a remedial process to find the origin of the errors was underway, and that consequence management would also take place to ensure accountability.
Mileham said the letter was an “unambiguous admission” that there were Nersa individuals who must be held accountable.
"Consequence management is not a suggestion; it is an absolute necessity. The DA will not rest until the officials responsible for imposing this R54-billion tax on the public are identified, exposed, and appropriate measures taken to sanction them. It is simply unacceptable that ordinary consumers are forced to pay for the ineptitude of State officials who continue to draw a salary,” he stated.
Meanwhile, in its letter to Mileham, Nersa assured that it had initiated “enhanced quality control measures” to prevent similar errors from occurring in the future.
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