South Africa tariff rise likely after RCA decision

The National Energy Regulator of South Africa (Nersa) has approved a regulatory clearing account (RCA) balance of R7.82bn ($734m) following an application by national utility Eskom. The ruling is likely to result in a tariff increase of 2-5% in 2015-16 on top of the 8% already approved. The RCA is a mechanism which allows Eskom to recoup unforeseen losses accrued during previous multi-year price determination (MYPD) periods due to discrepancies between tariff forecasts and the actual developments over the period.