Lower increase in the price of electricity
There is light at the end of the tunnel for cash-strapped residents – especially as energy regulator Nersa has determined that the Modimolle-Mookgophong Municipality may only increase its electricity tariff by 8,9% instead of the 12% approved in the budget.
Die Pos reported earlier that the council approved a 4,9% increase in all municipal tariffs, except for a 12% increase in the cost of electricity as of 1 July 2024.
The High Court in Pretoria however determined on Friday, 28 June that Nersa’s decision to consider municipalities’ applications for electricity tariff increases without the required cost studies, is unlawful and invalid. In a case brought by Civil Rights Organisation, AfriForum, the court heard that of the 178 licensed electricity distributors, only 66 included the cost studies.
The municipalities of Bela-Bela and Mogalakwena (Mokopane) are among the 66.
According to Charles Malema, the chief financial officer of the Modimolle-Mookgophong Municipality, Nersa has given them approval to implement an increase of effectively 8,9% against the applied increase of 12%.
“We will therefore in July submit an item to the council to ratify the 8,9% approval received from Nersa,” he said.
“We are aware of the media reports relating to AfriForum and Nersa. We were not a party to the alleged court processes and therefore, as per law, we can only implement Nersa-approved tariffs. We will be awaiting further directive from Nersa.”
Councillor Wiets Botes (DA) said that he shares residents’ relief which the lower increase in tariffs will bring, but he is worried about the impact it might have on the longer term.
“Residents will only see a difference in their municipal accounts from next month. I’m concerned as traditionally electricity sales were the one area where municipalities could get an income to use for necessary maintenance.
As we all know, we are falling short in so many areas of maintenance. I think many residents have seen that the municipality has been utilising the budget to good use in the right channels to upgrade the town and improve service delivery.”
