City of Cape Town under fire over 'reckless' electricity tariff hike
Energy Minister Gwede Mantashe alleges the City of Cape Town has been overcharging residents for electricity for the past two years.
- Early Breakfast with Africa Melane
- City of Cape Town
- National Energy Regulator of South Africa (Nersa)
Table Mountain, Cape Town / Wikimedia Commons: StevenMorrow
Zain Johnson interviews GOOD Party MP Brett Herron.
Listen below.
Energy Minister Gwede Mantashe is accusing the City of Cape Town of overcharging residents for electricity tariffs for the past two years.
He says the City implemented tariff increases exceeding those approved by regulator Nersa, potentially resulting in hundreds of millions of rands in overcharges.
Herron says he is concerned about the legality of these actions and the status of the City's court application regarding the tariffs.
While the City justifies its actions as necessary to cover expenses and maintain services, critics contend that the current tariff-setting system allows for exploitation.
Herron says that the City's budget reveals a surplus, which they allocate to other purposes, implying the tariff encompasses more than just the electricity itself.
He is disappointed that Nersa has not yet resolved this issue.
"We're going to have to rely on the courts now to resolve this."
- Brett Herron, Secretary-General – GOOD Party
"The City of Cape Town's defiance affects those of us who purchase electricity from the City."
- Brett Herron, Secretary-General – GOOD Party
"I think the City is conducting itself very recklessly."
- Brett Herron, Secretary-General – GOOD Party
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