In a letter addressed to city manager Musa Mbhele, which News24 has seen, Nersa CEO Nomalanga Sithole said, at a meeting on 2 June, it approved a 15.1% tariff increase for the 2023/24 period.eThekwini spokesperson Lindiwe Khuzwayo said the reduced tariff hike placed the City in a precarious position.
Load shedding and customers struggling to pay their municipal bills also dented sales, Khuzwayo added.Budget cuts for Nersa benchmarks"The City finds itself in a critical situation where it now needs to make up for these losses as the electricity infrastructure has borne the brunt of the accumulated decrease in revenue.
"We still have to pay Eskom every month and meet our other day-to-day obligations. By lowering the tariff increase, in effect we are providing electricity at cost." When asked about increased electricity costs due to corruption, Khuzwayo said the City had a zero-tolerance approach to corruption. "Disciplinary action will follow without fear or favour. We are committed to clean governance and avoiding any financial leakages."
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