On Friday afternoon, the North Gauteng High Court in Pretoria ordered that only those municipalities that have done cost-of-supply studies are entitled to a tariff increase on 1 July. This follows the announcement by the National Energy Regulator of South Africa just hours earlier, stating that it has approved the tariff applications for 178 municipal distributors. The order comes after Afriforum challenged Nersa’s methodology used when considering the applications.
Read: Nersa’s approval of municipal electricity tariffs challenged A 2022 court order set aside the guideline and benchmark method used by Nersa to approve municipal tariffs. According to legislation, distributors can recover their efficient cost plus a reasonable margin. The court gave Nersa a year to switch to this method and expressly forbade it from using the unlawful method again in determining the tariffs for 2024/’25.
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