Eskom has won a high court case against energy regulator, National Energy Regulator of South Africa (Nersa).
The legal battle victory allows Eskom to recover costs incurred during the 2019 financial year.
The power utility had asked Nersa for a tariff increase that would allow it to generate over R219-billion in revenue.
Nersa’s allowed for increases that would amount to just over R190-billion.
Eskom has 60 days to apply to the regulator to increase the tariffs.
Earlier last month, the High Court in Pretoria dismissed Eskom’s urgent bid to have electricity tariffs doubled.
The court has decided the matter is not urgent but will still review the merits of the case.
Eskom was seeking relief from Nersa’s multi-year price determination decision which would have seen tariffs increase by just over 8% in the current financial year and by 5.2% in the next financial year.
Eskom released a statement and said it noted and respects the High Court’s decision.
Eskom said at the heart of the issue was Nersa’s decision to deduct R23 billion received from government and treating that as revenue. The deduction means the power utility will get less than what it had budgeted for with regards to tariffs.
Nersa, however, is pushing back, arguing that Eskom’s incompetence and maladministration resulted in the public forking out more money.