The National Energy Regulator of SA (Nersa) is probing a complaint against the City of Cape Town, after the GOOD Party asked it to reject the municipality’s electricity rate hike which came into effect on July 1.
The City had approved electricity tariff increases of 17.6%, while Nersa had approved a guideline increase of 15.1% for all municipalities.
Last week, Nersa ruled that the eThekwini Municipality cannot impose a 18.49% tariff increase for electricity and instead must stick to the 15.1% increase it had recommended hike.
The City defended its decision saying that it spends up to 70% of its tariff income to buy electricity from Eskom, with the remaining 30% covering the costs to help ease load shedding.
dailyvoice@inl.co.za