POLOKWANE – Following an application from Afriforum to the Gauteng High Court on Friday, the Polokwane Municipality is among 112 municipalities impacted by the court’s decision to halt proposed electricity tariff increases, effective from Monday, 1 July 2024. Polokwane had applied for a 12.75% increase.
On Tuesday, 2 July, the National Energy Regulator of South Africa (Nersa), the first respondent in the case, announced in a media release that it had filed for leave to appeal the ruling.
Nersa stated that this application would suspend the implementation of the court’s order.
Read more: Nersa approves applications for electricity tariffs
Local Polokwane legal practitioner and DA ward councillor, Adv Franco Marx, explained that the law mandates the suspension of a decision’s execution pending the outcome of an application for leave to appeal.
However, he noted that Afriforum could request the court to maintain the initial order’s effect during the appeal process.
This would require Afriforum to demonstrate that ratepayers would suffer irreparable harm if the order were suspended, and that Nersa would not suffer irreparable harm if it were maintained.
Afriforum’s argument on Friday referenced an October 2022 High Court order requiring municipalities to submit a cost study with their tariff increase applications, as stipulated by the Electricity Regulation Act 4 of 2006.
The Polokwane Municipality failed to comply, leading the court to rule Nersa’s approval of the tariff increases unlawful and invalid.
Morné Mostert, AfriForum’s local government affairs manager, emphasised the importance of cost studies for determining fair and accurate tariff increases, ensuring municipalities charge appropriately to maintain services and infrastructure.
Nersa confirmed that out of 178 licensed electricity distributors, only 66 municipalities had submitted the required cost studies.
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In Limpopo, compliant municipalities included Musina, Ba-Phalaborwa, Ephraim Mogale, Greater Tzaneen, Bela-Bela, and Mogalakwena, allowing them to implement new tariffs from July 1.
Other municipalities, including Polokwane, must continue using 2023/2024 tariffs until new cost studies are submitted and approved within 60 days.
Municipal spokesperson Thipa Selala explained that Polokwane initially submitted a draft application to Nersa, which was approved following compliance with Nersa’s comprehensive tool for tariff adjustments.
Selala confirmed that the municipality plans to proceed with the tariff increase as approved and awaits further directives from Nersa regarding the court order.
For further information or updates, residents are encouraged to stay informed through official municipal channels.
