Alan Beesley, an ActionSA eThekwini caucus member, welcomed the Nersa-approved increase and said should the municipality continue with its proposed 18.5% increase, it would be in contravention of the license agreement with Nersa and subject to sanctions.
“That the eThekwini municipality could not convince Nersa of its proposed increase is evidence enough that the reasons put forward by mayor Mxolisi Kaunda had no validity and did not take into account the best interests of the already overburdened residents.
“Furthermore, it is worrying for residents and businesses that the municipality was one of only six out of 257 across the country that had approved electricity increases above Nersa's guidelines,” said Beesley.
He said it was a pity that the other inflationary tariff increases (such as rates, water and sewage) that the municipality has passed on to its residents and businesses do not have a regulatory body that approves increases.
The 3.4% drop in electricity costs will provide some relief for residents and businesses, he added.
Meanwhile, the Westville Ratepayers Association is against the tariff increase in the city and has embarked on a rates boycott
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These are the six municipalities whose electricity hikes above 15.1% were rejected by Nersa
Image: 123RF/EVGENI BISHTOK
The National Energy Regulator of South Africa (Nersa) has rejected six municipalities' proposals for steep electricity tariff increases and advised them to stick to its recommended 15.1%.
Nersa published its annual guidelines and benchmarks for the increase in municipal electricity tariffs that started on July 1.
Six municipalities, including two in KwaZulu-Natal, had applied for increases.
The Msunduzi municipality applied for a 21.49% increase, the highest, followed by the eThekwini metro and the Witzenberg and Swartland municipalities, which asked for 18.49%.
The City of Cape Town asked for a 17.6% increase, while Oudtshoorn applied for 16%.
Nersa spokesperson Charles Hlebela confirmed to TimesLIVE that the regulator rejected the proposals and granted tariff increases of 15.1%.
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Alan Beesley, an ActionSA eThekwini caucus member, welcomed the Nersa-approved increase and said should the municipality continue with its proposed 18.5% increase, it would be in contravention of the license agreement with Nersa and subject to sanctions.
“That the eThekwini municipality could not convince Nersa of its proposed increase is evidence enough that the reasons put forward by mayor Mxolisi Kaunda had no validity and did not take into account the best interests of the already overburdened residents.
“Furthermore, it is worrying for residents and businesses that the municipality was one of only six out of 257 across the country that had approved electricity increases above Nersa's guidelines,” said Beesley.
He said it was a pity that the other inflationary tariff increases (such as rates, water and sewage) that the municipality has passed on to its residents and businesses do not have a regulatory body that approves increases.
The 3.4% drop in electricity costs will provide some relief for residents and businesses, he added.
Meanwhile, the Westville Ratepayers Association is against the tariff increase in the city and has embarked on a rates boycott
TimesLIVE
Support independent journalism by subscribing to TimesLIVE Premium. Just R20 for the first month.
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