Eskom’s latest tariff hikes have many residential customers paying between R168 and R792 more per month on their electricity bills. Eskom has also adjusted the tariffs it charges to local authorities like municipalities by 12.72%. These adjustments took effect in June.
The actual new tariff hikes implemented by municipalities could also be higher than Eskom’s hike, as they may apply for an additional increase based on the cost of providing electricity in their specific operating environments.
AfriForum filed an application in court in a bid to stop the National Energy Regulator of SA (Nersa) from considering municipalities’ application to hike tariffs, and the order was granted in July.
In a statement, AfriForum said this means Nersa may not consider applications for electricity tariff increases from municipalities unless the required cost studies are also submitted.
“As such, the court ordered that municipalities whose cost studies are absent will have to continue charging electricity tariffs based on the existing rates approved for the 2023/24 fiscal year. Municipalities’ applications for electricity tariff increases for the 2024/25 fiscal year can indeed be reconsidered by Nersa, provided that the necessary cost studies are submitted within 60 days from the date of the court order,” read the statement.
In layman’s terms, the court has ordered that municipalities are prohibited from levying tariff increases unless they are based on a Cost of Supply Study (CoS) and that the CoS was submitted with the tariff increase application. According to a letter presented to AbaQulusi Local Municipality by the chairperson of AfriForum Vyheid, André van der Walt, the municipality has allegedly not yet conducted a Cost of Supply Study and is now in contempt of this court order.
“We urgently request the municipality’s plan of action to comply with the court order, specifically how the municipality will revert to charging last year’s rates until such time that a valid Cost of Supply Study has been completed. Please also provide us with a timeline and the steps being taken to ensure compliance. Furthermore, we are advising all account holders to lodge disputes against their electricity accounts, as provided for in Section 102 of the Municipal Systems Act, due to the unlawful tariff increases,” said Van Der Walt.
The Vryheid Herald forwarded the letter to AbaQulusi Local Municipality for a response from the municipal manager regarding the issue. A response had not been received at the time of going to print.
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The news provided to you in this link comes to you from the editorial staff of the Vryheid Herald, a sold newspaper distributed in the Vryheid area.
