News / South Africa / Government

Tshegofatso Seleke
1 minute read
20 May 2019
11:22 am

Nersa rubbishes Mashaba’s statement on 15.63% Eskom increase

Tshegofatso Seleke

The energy regulator slammed the Johannesburg mayor's statement for allegedly containing 'unfortunate, incorrect, and misleading information'.

Johannesburg Executive Mayor Herman Mashaba. Picture: Screenshot (eNCA YouTube channel)

The National Energy Regulator of South Africa (Nersa) responded to mayor Herman Mashaba’s statement that was issued on Tuesday, May 14, and viewed it as not only incorrect, but misleading and mischievous, Roodepoort Rekord reports.

The statement said that municipalities across South Africa would have to increase their electricity tariffs as they now face a 15.63% rise from Eskom.

Mashaba’s statement also said that Nersa was “rewarding corruption at Eskom” by imposing the increase.

Charles Hlebela, head of communications, said: “Nersa has noted with disappointment the unfortunate, incorrect, and misleading information contained in media reports titled ‘Nersa rewards corruption with 15.63% increase’, allegedly issued by mayor Herman Mashaba.”

READ MORE: Corruption at Eskom ‘rewarded’ with a 15.63% increase – Mayor Mashaba

Hlebela added: “Nersa is the regulatory authority of the energy sector in South Africa and its mandate includes the regulation of the electricity supply industry. In terms of Section 4(ii) of the Electricity Regulation Act, 2006 (Act No. 4 of 2006), the Energy Regulator must regulate electricity prices and tariffs.”

The statement released by Nersa stated that: “in this regard, on an annual basis, the Energy Regulator approves a percentage guideline increase and reviews the municipal tariff benchmarks. The guideline increase assists municipalities in the preparation of their budgets, while the revised benchmarks are used in the evaluation of the municipal tariff applications and to ensure that tariffs across municipalities are not vastly different.

“Nersa remains committed to its regulatory principle of being transparent in its decision-making process, and assures all stakeholders and the public that its decisions are made following due regulatory process.”

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