Nersa’s Gumede calls for overhaul of ‘outdated’ electricity tariff methodology

National Energy Regulator of South Africa (Nersa) fulltime member for electricity Nhlanhla Gumede has called for the regulatory methodology used to set electricity tariffs in South Africa to be overhauled, arguing that the multiyear price determination (MYPD) approach is not aligned with the changes taking place in the sector. Speaking during a virtual briefing only days after Nersa lost another court battle with Eskom over its application of the MYPD, Gumede argued that the ongoing disputes between the regulator and utility were largely about the “outputs of models, rather than the construct of those models”.