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South Africa's Top Businesses Reject Eskom's R24bn Revenue Clawback

Published September 21, 2023
8 months ago

Notable organisations representing some of South Africa's leading industries are staging a significant pushback against Eskom's proposed revenue clawback. Eskom, the beleaguered national electricity entity, had submitted a request to the National Energy Regulator of South Africa (NERSA) for approval of an unprecedented R24bn recovery via a regulatory clearing account (RCA) application for the fiscal year 2021/22.

Sent in April, this application marks Eskom's commitment to recover its operational costs despite the economic impacts brought by the past years. However, this proposed move is not sitting well with various industry players in South Africa, who evidently perceive this revenue clawback as unfit in an already strained economic outlook.

The initial pushback from South Africa's major industries spells a potential clash between the principal energy provider and the country's economic backbone. Furthermore, it mirrors the brewing unrest within South Africa's economic sectors, as several other entities navigate the challenging financial implications of operational cost recovery amidst an economically debilitating period.

This story is still developing, and all eyes remain on NERSA's conclusive decision on Eskom's request to claw back a significant amount of revenue. The decision, whichever way it goes, stands to impact South Africa's industries and the economy at large tremendously.

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