AfriForum heads to court over municipal electricity tariff hikes
Lobby group AfriForum has filed an urgent application in the High Court in Pretoria against the National Energy Regulator of South Africa.
AfriForum’s Morné Mostert said Nersa must view municipal tariff applications in a legislative way.
Moster said municipalities must have a cost of supply document stating the costs of delivering electricity to consumers, the costs of managing electricity affairs, and the municipalities’ profit.
"As most of the municipalities do not have a cost of supply study, it is improper for Nersa to be able to give an electricity tariff increase if it has no grounds or basis to do so.
"Two years ago, the regional court ordered Nersa to ensure that they apply these processes, and they must make sure that they can do everything that they can to ensure that the electricity industry is not being unregulated or that they have these processes in place for these tariffs to be approved only if they have a cost of supply document".
Mostert warned that municipalities cannot increase electricity tariffs unless it has a cost of supply study document to justify the hike.
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