The National Energy Regulator of South Africa (Nersa) has given municipalities the green light to continue with tariff increases pending the outcome of its appeal to the recent court ruling.
The Gauteng High Court recently ruled in favour of AfriForum to prevent an increase in electricity tariffs due to outstanding documents.
AfriForum says its court application is aimed at giving consumers a better understanding of what they are paying for when buying electricity and to ensure that municipalities are held accountable.
In a recent ruling on the 12.7% tariff increase for the 2024/25 financial year, the court found that Nersa’s consideration of the tariff increase applications without the necessary cost study was unlawful.
Nersa had approved the tariff increase applications of 178 municipalities.
In a statement, Nersa affirms its decision giving municipalities the go-ahead to increase tariffs while the appeal is being processed.
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Group Advisor at Ntiyiso Consulting, Miyelani Holeni, suggested that Nersa request a grace period for implementing the cost study while allowing tariff increases to proceed.
Holeni stated, “Municipalities should commit to conducting a cost study but cannot delay necessary tariff increases to maintain service quality and meet financial obligations to Eskom.”
Nersa in a statement, however, emphasised its commitment to reviewing regulatory tools considering changes in the electricity supply industry, legislative amendments, the unbundling of Eskom, and new energy investments.
The new tariff increases took effect for over 60 municipalities on July 1, 2024.
Media Statement – Energy Regulator Decisions of Meeting No 276 of 27 June 2024. pic.twitter.com/fbTj0XCqhv
— NERSA_ZA (@NERSA_ZA) July 2, 2024
