DA calls for NERSA to clarify its electricity tariff determination methodology
The DA's energy spokesperson - Kevin Mileham - said this should happen following an admission by NERSA that the tariff hikes had been based on the wrong legal interpretation.
CAPE TOWN - The Democratic Alliance (DA) is calling on the National Energy Regulator of South Africa (NERSA) to provide urgent clarity on its electricity tariff determination methodology.
The DA's energy spokesperson - Kevin Mileham - said this should happen following an admission by NERSA that the tariff hikes had been based on the wrong legal interpretation.
He said South Africans need clarity, as Eskom proposes a 36% tariff increase - which still has to be approved by NERSA.
The Sunday Times reported how NERSA's head of generation - Nhlanhla Gumede - said a “mistaken interpretation of the law” by the regulator has potentially made tariff increases higher than they should be.
Mileham believes the regulator should disclose its methodology.
He said if NERSA does not address the confusion around the model it uses, its approval of electricity hikes under flawed legal interpretations may potentially rob South Africans.
"The DA is calling on the National Energy Regulator of South Africa (NERSA) to provide urgent clarity on its electricity tariff determination methodology, following the regulator’s shocking admission that the ongoing electricity affordability crisis has been exacerbated by tariff hikes based on 'a mistaken interpretation of the law'.”
Parliament, meanwhile, has also confirmed the debate into Eskom’s proposed 36% tariff increase for next year will take place on the 3 September 2024.
ESKOM SUBMITS APPLICATION TO NERSA FOR 2024 PROPOSED TARIFF
At the same time, Eskom says they have submitted their application to NERSA for next year’s proposed electricity tariff hike.
Eskom’s intention to ask NERSA for a 44% electricity hike for sales to municipalities, and a 36% hike for direct Eskom customers was revealed earlier this year.
This falls on the back of an almost 13% electricity tariff hike in April.
Eskom will engage in public consultations after their application for next year’s tariff hike increase was submitted to NERSA.
Addressing the media at Megawatt Park on Monday, Eskom CFO Calib Cassim explained the process of their application.
“We first consult with SALGA [South African Local Government Association] and national treasury, we receive their inputs and take that on board.”
He added public consultation will form part of the process.
“We have submitted to NERSA, but we don’t consult on it until NERSA publishes that application. So, they are currently still in that process. Once that is published by NERSA, we publish on our website and then we engage in the NERSA process.”
A petition launched by the da to block the proposed 40% tariff hike has garnered almost 60,000 signatures.