Nersa methodology for municipal electricity tariffs ‘unlawful, invalid’

[Swa]

Energy regulator Nersa has been sent back to the drawing board after the High Court in Pretoria declared the methodology it has been using for at least a decade to determine municipal electricity tariffs unlawful and invalid.

Moneyweb earlier reported that the business chambers of Nelson Mandela Bay and Pietermaritzburg approached the court for a declaratory order in this regard. Eskom supported the application.

The court on Thursday ruled in favour of the applicants and ordered Nersa to pay their costs as well.

According to tariff expert and instructing attorney for the chambers MC Botha, the ruling will bring an end to the practice of municipalities using electricity revenue to subsidise other services. It will force Nersa to scrutinise municipal tariffs and only allow efficiently incurred cost and ensure that cross-subsidisation between user groups is fair and transparent.

The court has given Nersa 12 months to rectify the situation, which means tariffs applicable from 2024/25 will be based on the cost of supply, as has been the case for Eskom all along.

Nersa methodology for municipal electricity tariffs ‘unlawful, invalid’

Court gives it 12 months to rectify the situation.

www.moneyweb.co.za

 

[Neptuner]

R8 per kWh coming soon

 

[Paul_S]

No, at R8/kWh solar PV installs will be incoming and thereafter municipal collapses incoming as their cash cow dries up.

 

[itareanlnotani]

Rates +++

 

[Neptuner]

No, at R8/kWh solar PV installs will be incoming and thereafter municipal collapses incoming as their cash cow dries up.

and as increased Solar PV installs a fixed tariff will be increased or attached to these user groups.