Nersa's benchmarking method for municipal power tariff hikes unlawful - CoCT

The City of Cape Town was responding to allegations that it raised tariffs by 17.6% unlawfully, citing it was approved by council under the Finance Management Act.

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CAPE TOWN - The City of Cape Town said the benchmarking method used by the National Energy Regulator of South Africa (Nersa) for municipalities to increase electricity tariffs was unlawful.

According to the city, Nersa’s methodology of capping electricity hikes for municipalities had already been found unrealistic by two high court judgements.

The city was responding to allegations that it raised tariffs by 17.6% unlawfully, citing it was approved by council under the Finance Management Act.

Meanwhile, political party, Good, is calling on the city to account for raising tariffs above Nersa's approved benchmark.

Spokesperson, Anton Louw: "Many Capetonians, like their sisters and brothers elsewhere in the country, are suffering the profound indignities of unemployment and extreme poverty. Many South African homes are barely lit, not because of load shedding but because residents can’t afford to buy any units."

READ MORE:

- New rates and municipal service tariffs kick in for Cape Town residents

- Good party calls on Nersa to reject City of Cape Town’s electricity tariff hike

- Calls intensify for CoCT to explain above Nersa-approved electricity tariff hike