Energy regulator took 4 minutes to approve municipal price hikes — Report

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Afriforum News

Electricity Regulation Act (ERA),Electricity Tariffs,Headline

Nersa is supposed to assess the adjustments diligently to ensure the municipalities’ calculations are correct and that their profit margins are reasonable.

The National Energy Regulator of South Africa has been accused of rushing through municipalities’ electricity hike approvals without proper assessments of their validity.has obtained information showing that Nersa’s electricity subcommittee approved roughly 30 applications in each of several two-hour meetings between 24 and 28 June 2024.

For the 2024/2025 financial year starting on 1 July 2024, Nersa only announced it had approved electricity tariff hikes for 178 licenced electricity distributors — primarily municipalities — on 28 June 2024. The outstanding municipalities which failed to use the proper procedure and did not submit cost studies with their calculations will now be paying around 12.72% more for electricity from Eskom, while still charging customers the same amounts they did in their previous financial year.At the time, law firm MC Botha Incorporated explained that Nersa’s only option was to return to the court and request that the old method be allowed for the next year.

Afriforum, the entity which sought the interdict to block Nersa from applying the tariffs, called the order a “victory for civil rights”.

 

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