The Democratic Alliance (DA) is pressing the National Energy Regulator of South Africa (NERSA) to urgently clarify its methodology for determining electricity tariffs. This call follows a startling admission by NERSA that recent tariff increases were based on a misinterpretation of the law, potentially leading to higher costs for consumers. Kevin Mileham, the DA’s energy spokesperson, emphasized the need for transparency, especially as Eskom seeks a 36% tariff increase that still requires NERSA’s approval.
According to the Sunday Times, NERSA’s head of generation, Nhlanhla Gumede, acknowledged that a legal error by the regulator might have unnecessarily inflated tariff hikes. Mileham insists that NERSA must disclose its methodology to avoid unjustly burdening South Africans with inflated electricity costs.
As Eskom moves forward with its application for next year’s tariff increase, proposing a 44% hike for municipalities and a 36% increase for direct customers, public consultations will be conducted following NERSA’s publication of the application. The DA has also launched a petition against the proposed 40% hike, which has garnered nearly 60,000 signatures. Parliament is set to debate the issue on September 3, 2024.
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