Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom

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