Metro tariff increases delayed to allow for consultation
‘Due to the decision to delay charges, the city has resolved to credit users who may incur multiple charges should they make more than one purchase per month.’
The metro’s planned electricity tariff increases have been put on hold until next week Monday.
“This decision has been made following internal consultation with the relevant departments,” said Tshwane mayor Stevens Mokgalapa.
The increases will now kick in on 15 July.
The decision came after public consultations by the National Energy Regulator of South Africa (Nersa) were scheduled for Thursday 11 July.
The Tshwane metro had applied in June to increase tariffs by an average of 13.07%. But Nersa did not approve them after objections by AfriForum and the
Tshwane Money Matter Caucus who raised concerns about the tariffs, stating that they would impact urban-edge residents the most.
AfriForum went to court to prevent the metro from instituting the increases without Nersa’s approval.
Nersa now plans public hearings, which will take place at Kulawula House in Arcadia on 11 July between 10:00 and 14:00, where different stakeholders give input on the metro’s tariff increase application and the restructuring of its tariffs.
Mokgalapa said he welcomed the postponement of AfriForum’s court case, which was scheduled for Tuesday 10 July in the North Gauteng High Court.
“We are looking forward to engaging AfriForum and relevant stakeholders to resolve this matter amicably,” he said.
On 30 June, the city council decided to amend the proposed tariff increases and reduce the agricultural user fee from R610 to R250.
They also decided to drop the R200 residents monthly flat rate to R56 (excluding unit charges).
ALSO READ: AfriForum mobilises to block ‘excessive’ Tshwane power tariffs
“The R56 charge has already come into effect,” said Mokgalapa.
“Due to the decision to delay charges, the city has resolved to credit users who may incur multiple charges should they make more than one purchase per month.”
AfriForum’s local government affairs head Morne Mostert said they met with the metro on Tuesday 9 July regarding the increased electricity tariff which the metro implemented “without Nersa’s approval”.
He said the meeting came after metro senior management invited them to convene before the court application AfriForum had brought.
“The metro asked AfriForum to make proposals regarding the tariff, especially the structural change,” he said.
“They also confirmed to us that any person’s account, which was billed incorrectly, would be adjusted.
“Normal users would also not receive any accounts before the electricity tariff dispute has been cleared up.”
Mostert said this was a priority for AfriForum.
“We will continue opposing the increase – unless a reasonable electricity tariff increase, which complies with the necessary processes and approval from Nersa, is placed on the table.
“We still view this case as urgent and will apply pressure to the metro to protect the rights of our members.”
Meanwhile Nersa has halted the approval of Tshwane tariff increase application made by the metro and has said public hearings to glean affected parties’ views should be conducted.
Speaking to Rekord, a Nersa spokesperson confirmed concerns about the tariff application were raised and heard by the regulator at a meeting on Friday, 28 June.
Charles Hlebela said lobby groups argued that the tariffs presented in the council differed to the ones that the metro had submitted to the regulator.
This prompted the regulator to conclude the meeting not having approved the application to allow for the hearings to take place according to Hlebela.
He said the alleged lack of public participation concerned the regulator and as such as decision could not be made without the public participation process.
ALSO READ: UPDATE: Nersa decision on Tshwane tariffs expected
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