Nersa has controversial municipal electricity surcharges in its sights

Inquiry into the basis of these tariffs launched

- By Sunday World reporter

For years, South African electricity users have watched their monthly bills climb, not just due to annual Eskom tariff increases, but because of a complex web of additional charges levied by their local municipalities.

These surcharges, often opaque and heavily criticised, have become a significant source of revenue for municipal coffers and a major point of contention for frustrated consumers.

Now, in a move that could fundamentally reshape local government finances and bring relief to ratepayers, the National Energy Regulator of South Africa (Nersa) has launched a high-stakes inquiry that could see these municipal surcharges become a thing of the past.

The regulator has announced the publication of the terms of reference (TOR) for a focused market inquiry into the implementation and impact of fixed charges, a generation capacity charge, legacy charges, and other associated charges levied by electricity distributors, including Eskom and municipalities.

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.