DA demands accountability from Nersa over tariff error
The Democratic Alliance (DA) has written to National Energy Regulator of South Africa (Nersa) chairperson Thembani Bukula demanding public accountability and answers relating to the R54-billion error made in its recent Eskom tariff determination.
Nersa has agreed to a court order that Eskom can collect an extra R54-billion in tariffs over the next few years, as a result of errors made by the regulator in its sixth multiyear price determination revenue decision.
DA spokesperson on Electricity and Energy Kevin Mileham stated that this “monumental blunder” was not a simple mistake.
“… but a sign of gross incompetence at the heart of the country's energy regulator,” he said.
The DA vowed to protect South Africans from being taxed for “State ineptitude”, calling for a clear outcome, full transparency from Nersa, accountability for those responsible for the mistake, and a complete overhaul of the regulator’s processes.
“The consequence is that already-struggling South African households and businesses will be forced to pay billions more for electricity to cover for Nersa's failure. The decision to rectify this via a quiet settlement with Eskom, which will see tariff hikes soar to 8.76% in 2026/27 and 8.83% in 2027/28, is a slap in the face of every citizen,” Mileham said.
Last week, the party formally requested Parliament's Portfolio Committee on Energy and Electricity chairperson Nonkosi Queenie Mvana to urgently convene an inquiry into Nersa’s internal processes and its fitness to regulate the country’s energy sector.
The party highlighted that it is “unacceptable” that a technical error in the calculation of depreciation and the Regulatory Asset Base could result in such a massive financial burden being shifted onto consumers.
“This points to systemic failures within Nersa’s processes and calls into question the credibility of its regulatory oversight.
“This incident has shattered public confidence in the regulator. South Africans deserve a regulator that protects them, not one that makes them pay for its mistakes,” Mileham said.
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