It is not yet clear if Nersa and Salga will leave the matter there or continue and petition the Supreme Court of Appeal for leave to appeal.
The High Court in Pretoria on Monday denied electricity regulator Nersa and the municipal association Salga leave to appeal against its earlier judgment precluding Nersa from approving tariff increases in more than 100 municipalities.
While Nersa earlier communicated to municipalities that tariff applications must be done on the basis of cost-of-supply studies , it gave those municipalities that failed to do such studies a way out in January.The high court in 2022 already ordered Nersa to stop using its earlier guideline-and-benchmark method and comply with the law and electricity pricing policy that requires tariffs to be based on CoS.
“Nersa’s deviation from the Policy is clear; in fact, Nersa’s tells the Court that in 2024, it moved away from requiring the cost of supply studies as municipalities were not compliant. This case concerns Nersa’s move from a lawful method used in 2023 to an unlawful method in 2024. As a regulator, it cannot deviate from the legislature and executive’s standards because those it has to regulate are not complying with the law.
AfriForum manager for local government affairs Morné Mostert says CoS studies are critical because they provide a clear outline of what municipalities should charge for electricity to deliver the service and maintain networks properly. “In the meantime, AfriForum will send an urgent letter to the energy regulator and demand a plan of action regarding the refund of over-recovery to consumers,” says Mostert.
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