Municipal electricity tariff decisions must pass transparency and public participation test, says court

NEW fixed decision making timelines were set in place for municipal electricity tariff decisions, which include that the National Energy Regulator of South Africa (Nersa) must in future by May 5 finalise all municipal tariff applications.

- ZELDA VENTER

The order granted last week follows a judgment handed down in October by the Gauteng High Court, Pretoria, that Nersa’s approval of the implementation of municipal electricity tariffs without the use of proper cost-of-supply (COS) studies and public participation processes was unconstitutional.

Judge Etienne Labuschagne at the time issued a rule nisi, calling on the respondents, including all 158 municipalities, to show cause, if any, why the order regarding the proposed timelines should not be made.

The court has now imposed annual timelines on Nersa, Eskom, and all municipalities, which include that Eskom must submit its Retail Tariffs Structural Adjustments Application (ERTSA) annually by August 31.

Nersa must notify municipalities in writing by January 31 of the wholesale tariffs at which electricity will be supplied for the following financial year. Municipal electricity tariff applications must be submitted to Nersa by March 20, and it must make its final decision on each municipality's tariffs by May 5 and communicate the reasons for the decision immediately.