The African Christian Democratic Party (ACDP) supports the High Court in Pretoria’s decision to deny the National Energy Regulator of South Africa (NERSA) and the South African Local Government Association (SALGA) leave to appeal its earlier judgement which prevented NERSA from approving tariff increases in more than 100 municipalities.
We strongly believe that NERSA has an obligation to ensure that all municipalities apply cost-of-supply studies before implementing increases and that municipalities charge only for the cost of supply.
More than 100 municipalities have failed to comply with NERSA’s own requirement where a municipality must first provide a cost-of-supply study before NERSA grants a tariff increase. This failure, accompanied by NERSA’s attempt to approve the increases despite the municipalities failing to conduct their cost studies first, is in our view, unconstitutional and irregular. Additionally, it proves the court to be correct in its finding that NERSA had failed to comply with its own guidelines.
On the other hand, the ACDP views the touted 44% tariff increase requested by Eskom as a slap in the face of all South African consumers. Eskom, who had almost bankrupted itself, has received several bailouts over the years, from government, where the taxpayer has had to foot the bill. If this increase is approved, the ACDP believes that it may well be the final straw which breaks the consumer’s back.
South Africa faces many challenges which includes having one of the highest unemployment rates in the world. Millions of South Africans are struggling to make ends meet. We, therefore, view the proposed increase by Eskom, which has come in way above the inflation rate, as unconscionable.
This ACDP does not and will not support the proposed 44% tariff hike Eskom seeks. In line with this, we commend the Pretoria High Court for requesting NERSA to comply with its cost-of-supply policy. In doing so, the court provided a measure of protection to ratepayers and consumers in the various municipalities, and this the ACDP welcomes.
