Blow to municipalities

Power distributors under fire for not submitting their cost-of-supply studies.

- Marizka Coetzer

Municipalities that unlawfully increased electricity tariffs will have to refund consumers after the High Court in Johannesburg rejected the National Energy Regulator of South Africa's (Nersa) appeal regarding municipal power tariffs.

The municipal tariff hikes were stopped after the court ruled all municipalities that have not submitted cost-of-supply studies must once again charge the electricity rates approved for the 2023-2024 financial year.

Out of 178 licensed electricity distributors, only 66 distributors or municipalities, conducted the cost-of-supply studies to qualify to implement these increases.

Energy expert Clyde Mallinson said municipalities would have to refund residents for unlawful tariffs if AfriForum have their way.

"AfriForum said no municipalities were allowed to increase tariffs and must not only be reduced to the price it's supposed to be, but also pay back the money they have taken," he said.