Dundee Courier

High Court rules against Afriforum’s electricity tariff application

Endumeni was one of many municipalities that failed to base their tariff applications on a cost of supply study.

The electricity tariff increases that came into effect in all municipal areas on July 1 have been confirmed following last night’s High Court decision to dismiss Afriforum’s application to execute a previous court order.
AfriForum was seeking to have the High Court judgement of July 8, 2024 implemented whilst the appeal process that was granted to NERSA by the Supreme Court of Appeal is underway.

Had the court granted AfriForum’s order, certain decisions of the Energy Regulator on municipal tariff applications made in June 2024 would have been invalid.
The July 8 court order judgement required municipalities that failed to base their tariff applications on a cost of supply study to implement the NERSA-approved tariffs for the 2023/24 financial year. Endumeni Municipality was one of those municipalities.

“With the application having been dismissed, the June 2024 decisions of the Energy Regulator to approve municipal tariffs for the 2024/25 financial year remain valid in terms of the Electricity Regulation Act, 2006 (Act No. 4 of 2006), read with the National Energy Regulator Act, 2004 (Act No. 40 of 2004)”, said Charles Hlebela, NERSA’s communications head.
“The court’s ruling underlines NERSA’s principle of providing regulatory certainty in its decisions.”

 Eskom’s electricity tariff increases have been exorbitant for several years – an 18% increase in 2023 and a 13% increase in 2024. This is a price increase above inflation, which is currently at 4.4%.

 

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Terry Worley

Terry Worley has been associated with the Courier for many years and is involved in the community covering a variety of issues affecting residents. He has a passion for local politics and for the history of the area.

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