NERSA responds to Herman Mashaba’s statement on Eskom hikes. Photo: File.
The National Energy Regulator of South Africa (NERSA) responded to Mayor Herman Mashaba’s statement that was issued on Tuesday, 14 May, and viewed it as not only incorrect, but misleading and mischievous.
The statement stated that municipalities across South Africa will have to increase their electricity tariffs as they now face a 15,63 per cent rise from Eskom.
Mashaba’s statement also said that NERSA was “rewarding corruption at Eskom” by imposing the increase.
“NERSA has noted with disappointment the unfortunate, incorrect and misleading information contained in media reports titled ‘NERSA rewards corruption with 15.63 per cent increase’, allegedly issued by Mayor Herman Mashaba,” said Charles Hlebela, head of communications.
Hlebela added, “NERSA is the regulatory authority of the energy sector in South Africa and its mandate includes the regulation of the electricity supply industry. In terms of Section 4(ii) of the Electricity Regulation Act, 2006 (Act No. 4 of 2006), the Energy Regulator must regulate electricity prices and tariffs.”
The statement released by NERSA stated that, “in this regard, on an annual basis, the Energy Regulator approves a percentage guideline increase and reviews the municipal tariff benchmarks. The guideline increase assists municipalities in the preparation of their budgets, while the revised benchmarks are used in the evaluation of the municipal tariff applications and to ensure that tariffs across municipalities are not vastly different.”
“NERSA remains committed to its regulatory principle of being transparent in its decision-making process, and assures all stakeholders and the public that its decisions are made following due regulatory process,” he said.