Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Overview of <strong>Multi</strong>-<strong>Year</strong> <strong>Price</strong> <strong>Determination</strong><br />
2013/14–2017/18 (MYPD 3)<br />
2.2 Supporting legislation and policies<br />
This application is based on the following legislation, regulation and policies:<br />
Electricity Regulation Act (2006).<br />
Page 38 of 144<br />
Nersa‟s MYPD methodology, including “<strong>Eskom</strong>‟s <strong>Multi</strong>-year <strong>Price</strong> <strong>Determination</strong><br />
Revised Rules on Primary Energy Cost Variances, Capital Expenditure Cost<br />
Variances, Valuation of the Regulatory Asset Base and Triggers for a Re-<br />
opener”, approved by Nersa in March 2009.<br />
Nersa‟s Cost Recovery Mechanism for Power Purchase Agreements (November<br />
2009).<br />
Nersa‟s minimum information requirements (“Guideline on Minimum Filing<br />
Requirements for <strong>Eskom</strong> <strong>Multi</strong> <strong>Year</strong> <strong>Price</strong> <strong>Determination</strong> II <strong>Application</strong>”).<br />
“The Electricity Pricing Policy of the South African Electricity Supply Industry”<br />
(2008).<br />
Section 42 of the MFMA, to the extent that this application intends to amend<br />
<strong>Eskom</strong>‟s pricing structure for the supply of electricity to municipalities.<br />
<strong>Determination</strong>s in terms of section 34 of the Electricity Regulation Act (2006)<br />
published or issued to <strong>Eskom</strong> on or before 30 September 2012.<br />
Nersa is in the process of reviewing the MYPD regulatory rules. The finalisation of these<br />
rules is essential to address changes that may occur during the MYPD 3 period, especially<br />
with regard to the requirement to meet IRP 2010 capacity, possible implementation of a<br />
carbon tax and possible revision of the industry structure.<br />
It is assumed that the electricity industry structure will have no impact on the revenue<br />
requirement set out in this application. Should this assumption be incorrect, the application<br />
may need to be revised.