The civil rights organisation has asked the Pretoria High Court to block the National Energy Regulator of South Africa from considering municipalities’ tariff adjustment applications if they did not include cost studies.
That approach only considered how municipalities’ biggest electricity supply cost elements increased. “The regulator recently sent communications to municipalities in which the use of a revenue requirement template instead of the prescribed cost study was made available for tariff increase applications,” said Mostert.
Afriforum local government affairs adviser Deidré Steffens said that the organisation’s application was made in the interest of consumers. Rapport had also learnt that this was the internal legal advice Nersa received. However, it had yet to decide on a course of action. Nersa has approved a 12.72% increase in the price of wholesale electricity that Eskom sells to municipalities.
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