Photo by: Creamer Media
Civil rights organisation AfriForum says the National Energy Regulator of South Africa (Nersa) has applied to the Supreme Court of Appeal in the case related to its implementation of tariff hikes for at least 100 municipalities.
The organisation has been challenging the regulator’s implementation of what it deems to be unlawful and invalid tariff hikes. AfriForum says in its latest statement it will oppose this application in the interest of power consumers across the country.
AfriForum says Nersa wants to appeal against a judgment delivered by the Gauteng High Court on June 28, for which an application for leave to appeal was rejected on August 19.
The High Court ruled in AfriForum’s favour, stating that Nersa’s failure to consider tariff hikes without the required cost-of-supply studies is unlawful and invalid.
The court also determined that the 2023/24 power tariffs of all municipalities that did not submit the necessary cost-of-supply studies must be reinstated.
The submission of cost-of-supply studies is a required component of municipalities’ applications for tariff increases prescribed by the Electricity Regulation Act 4 of 2006, emphasises AfriForum local government affairs manager Morné Mostert.
He says these studies are of critical importance in the determination of power tariffs because they give a clear outline of what municipalities’ tariffs must be to be able to deliver the service properly and maintain networks.
These directives are precisely there to ensure the sustainability of power supply in municipalities and to prevent unfair increases at the expense of consumers.
Mostert says Nersa’s latest move is “extremely disappointing” given that the regulator had more than a year and a half to implement the methodology regarding cost-of-supply studies and failed to implement it successfully.
“Now they are failing consumers but also failing to live up to their mission statement. Although their mission is to regulate the energy industry in accordance with government laws and policies, it is clear that legislation and court decisions do not carry much weight in their books,” Mostert adds.
AfriForum will consult with its legal team to investigate all possible remedies that can be implemented in the interim.
