Nersa's position on High Court Ruling ESKOM HOLDINGS SOC LTD JSE CODE: BIESKM MEDIA STATEMENT 26 August 2015 Nersa media statement dated 25 August 2016 refers NERSA POSITION ON NORTH GAUTENG HIGH COURT RULING REGARDING ITS DECISION TO APPROVE ESKOM’S MULTI-YEAR PRICE DETERMINATION (MYPD3) REGULATORY CLEARING ACCOUNT FOR 2013/14 FINANCIAL YEAR The National Energy Regulator (NERSA) today announced that it will be appealing the North Gauteng High Court judgement delivered on 16 August 2016 regarding NERSA’s earlier decision on the approval of Eskom’s Multi-Year Price Determination (MYPD 3) Regulatory Clearing Account (RCA) for the 2013/14 financial year. The decision under review concerns NERSA’s approval of the RCA application for the tariff year 2013/14, which culminated in a 9.4% increase in the average tariff for standard customers for the 2016/17 financial year. NERSA is of the view that the judgement is flawed. It has also created a hierarchy of issues in the application of the MYPD methodology without considering the objective of the methodology and how the RCA is decided. Therefore, NERSA will be appealing the judgement on the grounds of it being premised on erroneous information, a non-implementable position, as well as its substitution of NERSA’s decision of 2014. It is believed that the appeal will create certainty with regard to the regulatory framework as there will be an approved tariff in place during the appeal process. It will also allow an opportunity to clarify issues raised in the judgement. The option to appeal is considered to be the most effective manner to remedy the situation created by the judgement while ensuring that regulatory certainty is sustained through the most available legal means without violating the contents of law and judgement. Enquiries Ms Wanda Langenhoven Acting Head of Communications Tel: 012 401 4600 Fax: 012 401 4700 Cell: 083 306 3402 Email: wanda.langenhoven@nersa.org.za Eskom Holdings SOC Ltd enquiries Francois Venter 011800 4050 Email: francois.venter@eskom.co.za Date: 26/08/2016 02:54:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.