On Now
Weekdays 15:00 - 18:00
The Joyride Nico, Nikki, Kayla and JayBee
NEXT: 18:00 - 19:00 OFM Business Hour with Mark
Listen Live Streams

Central SA

Electricity tariff increase causes stir in Kimberley community

───   CASEY-LEE ANTHONY 09:38 Fri, 05 Jul 2024

Electricity tariff increase causes stir in Kimberley community | News Article
Picture: CANVA

“That is why the High Court said Sol Plaatje and others cannot increase its tariffs – until the cost of supply study is approved.”

Soon after Nersa released the list of municipalities approved to increase their electricity tariffs, announcements were made of municipalities that announced an approved increase, yet did not appear on Nersa’s list.

The Sol Plaatje Municipality is among those not on the list yet announced they would increase their tariffs. The High Court’s recent order prohibits any tariff changes without compliance and a comprehensive cost of supply (CoS) study.

The Sol Plaatje municipality, Kimberley Action Group, NOCCI, Kimberley Large Business Forum, Nersa and National Treasury held a meeting on Thursday (5/7) to discuss the matter around the current increment and future tariffs concerning the price of electricity and other tariffs.

“We've established a Tariffs Reference Group aimed at proactively engaging structures mentioned hereunder on misperceptions of the electricity tariff increase; illegality and a lack of consultation,” said municipal spokesperson, Thabo Mothibi.

DA Representative, Chris Whittaker, also mentioned his understanding: “Nersa approved the tariffs. The problem is Nersa did the tariff approval without approving the CoS study first. The administration says approval was given, but the approval letter has not been presented to the council yet.”

“That is why the High Court said Sol Plaatje and others cannot increase its tariffs until the CoS study is approved.”

While the municipality has indicated that an appeal against the judgment will be made, it is unclear how the tariff can be implemented before leave to appeal is granted.

“We are still waiting to hear the conclusion after yesterday’s meeting, and the way forward,” Whittaker said.

OFM News/Casey-Lee Anthony cg

@ 2024 OFM - All rights reserved Disclaimer | Privacy Policy | We Use Cookies - OFM is a division of Central Media Group (PTY) LTD.