Municipality electricity prices are going up soon

Residents can anticipate yet another electricity price increase this year as municipalities began applying for tariff increases to be effective as of July 1 to the regulator as of last month.

The National Energy Regulator of South Africa (Nersa) does not expect the late incorporation of public hearings to affect the set date for publishing approved municipality electricity tariff increases for the upcoming financial year.

Nersa proposed an average electricity tariff increase of 7.47% for municipalities, but this was not the final approved amount as the regulator was awaiting comments from municipalities and members of the public.

Residents can have a say and influence the upcoming electricity tariff increases in the public hearing which will be conducted by the regulator soon.

Initially, Nersa decided not to host public hearings and opted to follow a notice and comment process, but following requests from stakeholders, it has decided otherwise.

“It is for this reason that we decided to hold a public hearing on a date to be published later,” Nersa spokesperson Charles Hlebela said.

The date for the public hearings wherein residents can submit their comments on the increase has not yet been confirmed by the regulator.

Earlier this month, the DA was unhappy with the lack of public hearings for the municipal tariffs.

DA mineral resources and energy spokesperson Kevin Mileham said: “It is simply unacceptable for tariff hikes to be imposed on consumers without any public hearings. A cloak-and-dagger operation carried out without the input of those who would be most affected, is simply not right.”

Mileham said due to municipalities financially struggling, the tariff increase costs would be passed onto the consumer.

Hlebela said Nersa was well in its right by initially deciding not to hold public hearings. “The energy regulator opted not to hold a public hearing, but rather decided to follow a notice and comment process.”

This was because “in the past, few to no presenters” attended the public hearings to make representations to Nersa.

The final guideline increase will be published by May 11 to enable the municipal tariff increase process to be finalised for implementation by July 1.

In February, a 9.61% tariff increase instead of a 20.5% application by Eskom was approved. Nersa received more than 60 000 comments from private individuals, who all raised affordability concerns.

The 20.5% increase received unwelcome responses from residents as well as politicians.

Tshwane mayor Randall Williams rejected the proposed increase, describing it as “exorbitant” and “having a detrimental effect” on residents.

ALSO READ: Cables thieves ‘bolder’ as cables stolen outside Lyttelton police station