Lobby group AfriForum has brought an urgent application in the High Court in Pretoria against the National Energy Regulator of South Africa (Nersa) in hopes of preventing the regulator from considering municipalities\u2019 applications for electricity tariff increases.<\/p>\n\n\n\n
AfriFourm said that the tariff hike decision, which is set to be implemented on 1 July, was done “without the required cost studies,” which a 2022 High Court stipulated is required as prescribed by the Electricity Regulation Act 4 of 2006.\u00a0<\/p>\n\n\n\n
Morn\u00e9 Mostert, Manager of Local Government Affairs at AfriForum, said that “the use of a cost study for tariff increases is critical because it gives a clear outline of what municipalities\u2019 tariffs must be to deliver the service properly and maintain networks.”<\/p>\n\n\n\n
\u201cThe applications of municipalities that do not have cost studies are simply based on an estimate of what it costs to provide the service,” said Mostert.<\/p>\n\n\n\n
“However, applications for tariff increases must be made on accurately calculated figures that will ensure that fair tariff increases are passed on to consumers,\u201d he added.<\/p>\n\n\n\n
2023\u2019s electricity price hike of 18.65% (significantly less than the 32.02% increase Eskom asked for), in combination with the coming hike, means that South Africans will have seen at least a 33.8% increase in the electricity price over the two-year period.<\/p>\n\n\n\n
Although most municipal electricity price hikes are mostly in line with Eskom\u2019s 12.72% increase approved by Nersa, metropolitans like Nelson Mandela Bay and eThekwini drafted hefty increases compared to other major metros \u2013 with the cities of Johannesburg and Cape Town managing to shield their residents slightly.<\/p>\n\n\n\n
Nelson Mandela Bay tabled a harsh 15.7% electricity tariff increase \u2013 2.98 percentage points higher than Eskom\u2019s municipal hike \u2013 while eThekwini is set to increase by a notable 14%.<\/p>\n\n\n\n