NERSA launches comprehensive market inquiry into rising electricity charges

THE National Energy Regulator of South Africa (NERSA) has officially initiated a comprehensive market inquiry into the fixed and capacity charges levied by electricity distributors, including Eskom and various municipalities.

- THABO MAKWAKWA

This move aims to address growing concerns about the rising electricity costs and the structure of tariff increases, which many consumers and stakeholders have found contentious.

In a statement released at the weekend, Charles Hlebela, NERSAs Head of Communications, said the inquiry was due to the concerns raised by customers.

“This market-wide inquiry responds to widespread concerns from customers and stakeholders about the impact of these charges, as well as the level of increase imposed, and the structure and justification of these charges,” he said.

NERSA stated that the inquiry will scrutinise the genesis and implementation of fixed charges, generation capacity charges (GCC), and legacy charges, among other related fees.

The organisation said the inquiry is being conducted under the Electricity Regulation Act, 2006 (Act No. 4 of 2006), with the intent to reveal how such charges have led to significantly high increases over and above Eskom approved 12.74% tariff hike.