Municipal tariff methodology found to be wanting by the High Court

Municipal tariff methodology found to be wanting by the High Court. News24/UD Express, 27 October 2022.

The High Court delivered their judgement in favour of the Nelson Mandela Bay Business Chamber and the Pietermaritzburg and Midlands Chamber, which jointly filed papers earlier this year to legally challenge the National Energy Regulator’s municipal tariff methodology. MC Botha led the legal team that brought the application.

Original article on News24

The High Court delivered their judgement in favour of the Nelson Mandela Bay Business Chamber and the Pietermaritzburg and Midlands Chamber, which jointly filed papers earlier this year to legally challenge the National Energy Regulator’s municipal tariff methodology. The two Business Chambers participated in consultations for more than a year and acted when Nersa confirmed that it would not review their methodologies without a legal challenge.

“We believe that this will have the necessary effect on changing the way electricity tariffs are set and that soon municipalities will not be able to add on costs to consumers for their own inefficiencies,” says Denise van Huyssteen, CEO of the Nelson Mandela Bay Business Chamber.

“Furthermore, this case will potentially impact the determination and approval of electricity tariffs charged by municipalities across the entire country, ultimately benefiting all South African businesses and consumers.”

She said that this is the second time that the Nelson Mandela Bay Business Chamber has taken on a case
of this nature.

“We were successful over a number of years in restricting both Eskom and municipal electricity increases, thus providing savings to businesses and consumers across the country.”

According to MC Botha, electricity tariff expert and legal advisor who acted on behalf of the Chambers and its members, “It was an emphatic judgement, and it has been long awaited by commerce and industry.”

David Mertens, the lead of the Electricity Challenge Cluster for the Nelson Mandela Bay Business Chamber said, “This outcome demonstrates that the Chamber’s approach to establishing clusters with businesses to collaborate in finding solutions to common problems is effective. According to Melanie Veness, CEO of the Pietermaritzburg, and Midlands Chamber, “Municipalities will not be permitted to implement excessive tariffs and to utilise this income to fund escalating electricity losses which are the result of their own inefficiencies, which includes the lack of maintenance of infrastructure as well as rampant electricity and cable theft.”

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