JOHANNESBURG - Lobby group Afriforum has warned municipalities and the National Energy Regulator of South Africa to get their house in order amid a dispute over tariff increases.The lobby group has now taken NERSA to court to interdict a possible 12 percent electricity price hike for municipal consumers set to take effect next month.
Manager of local government affairs at Afriforum Morné Mostert said that the purpose of this is not only to stop the additional cost being passed onto consumers but more importantly, for municipalities to get their act together. "If they do not get the tariff increases, let’s say they will be energised to do it before the next financial year."
While a win for Afriforum would be good news for consumers, Efficient Group Economist Dawie Roodt said that it would spell bad news for municipalities. "If they can’t get that then they will be in deeper financial troubles or they have to improve their efficiency, which is what i think Mr Mostert is trying to say. Because let’s be honest, the municipalities broadly speaking, not all of them, are not very efficient."
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