The National Energy Regulator of South Africa (Nersa) on Monday called on 12 of the country’s municipalities, which have yet to apply for a tariff increase for implementation on July 1, to submit their applications as soon as possible.
The deadline for submissions had been June 6.
In March, Nersa approved a municipal tariff increase guideline of 7% for the 2013/14 municipal tariff review process and, although 171 of the country’s 183 municipalities had submitted applications, the regulator expressed “serious concern” over those that have not.
Nersa referred to the Electricity Regulation Act, which states that “a licensee may not charge a customer any other tariff and make use of provisions in agreements other than that approved by the regulator as part of its licensing conditions”.
Nersa spokesperson Charles Hlebela told Engineering News Online that all municipalities had to apply for a tariff increase, whether below or above the guideline; however, municipalities applying for an increase above the guideline would have to clearly justify their requests.
He further explained that those municipalities that did not seek a tariff increase would also have to apply to continue using existing tariffs.
The municipalities that had not applied for tariff increases for implementation were Mogale City, Randfontein, Greater Taung, Richtersveld, Kgetleng River, Madibeng, Umkhanyakude, Tokologo, Victor Khanye, Gariep, Dipaleseng and Nala.
Other municipalities that have submitted applications, but which contained insufficient information included Tswaing, Mamusa, Westonaria and Ventersdorp, besides others.