NERSA Being Taken to Court Over High Tariffs

1 min read

The National Electricity Regulator of South Africa (NERSA) is being taken to court by the Nelson Mandela Bay Business Chamber (NMBBC) over the methods it uses to determine the country’s electricity tariffs. The case commenced on the 9^th of June 2022.

The NMBBC argues that NERSA’s tariffs are too high leading to decreased competition in business and increased unemployment. NERSA is the body that regulates the prices at which municipalities buy electricity from Eskom and the prices that the municipalities can resell the electricity to their consumers. The NMBBC wants these tariffs lowered.

They also argue that the high tariffs are putting municipalities further into debt. This is due to having to deal with increased tampering with electricity meters and illegal connections. The municipalities are then left with insufficient funds and are unable to resolve these issues. This then leads to failing infrastructure, unreliable electricity supply and more theft.

Eskom is supporting the NMBBC’s move, as it is owed over R41 billion by South African municipalities. The Nelson Mandela Bay municipality reported that they expect to lose R800 million in electricity distribution for the 2022/23 financial year.

Who do you think is to blame for Nelson Mandela Bay’s municipal electricity debt? Do you think taking NERSA to court will help solve the problem? Share your thoughts by replying to this email!

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