NERSA rejecting eThekwini’s ludicrous electricity tariff increase a victory for overburdened residents

6 July 2023

ActionSA welcomes the rejection by the National Energy Regulation of South Africa (NERSA) of eThekwini’s ludicrous electricity tariff increase for the financial year starting 01 July 2023.

The municipality had approved electricity tariff increases of 18.5% but as this was higher than the 15.1% increase which NERSA deemed appropriate, the municipality was compelled to justify the higher increase to NERSA.

At a recent hearing in which the justification was considered, NERSA rejected eThekwini’s submission and limited any electricity tariff increases to its guideline of 15.1%.

Should the municipality continue with its proposed increase of 18.5% it will be in contravention of the licence agreement between itself and NERSA and will be subject to heavy sanctions.

That the eThekwini Municipality could not convince NERSA of its proposed increase, is evidence enough that the reasons put forward by Mayor Mxolisi Kaunda for the high electricity increases had no validity and did not take Into account the best Interests of the already overburdened eThekwini residents.

Furthermore, it is extremely worrying for residents and businesses of eThekwini that the municipality was one of only 6 municipalities out of 257 municipalities across the country that had approved electricity increases above NERSA’s guidelines.

This clearly demonstrates the uncaring and out-of-touch political leadership running the municipality.

It is a pity that the other above-Inflation tariff increases (rates, water, sewage etc) that the municipality has passed onto its residents and businesses do not have a regulatory body that approves increases.

The tariff increases should be regulated by council but it is patently obvious that the ANC, NFP and EFF-led council has failed in this regard.

The 3.4% drop in electricity costs will provide some relief for residents and businesses and is a victory for ActionSA.

The proposed tariff increases were originally tabled and voted on, ActionSA strongly objected to them and will continue to do so. It is time the residents and businesses of eThekwini are put first.

Issued by Alan Beesley, ActionSA eThekwini Caucus Member, 6 July 2023