ActionSA Applauds NERSA’s Rejection of eThekwini’s Excessive Electricity Tariff Increase
ActionSA, a political party in South Africa, has welcomed the decision by the National Energy Regulation of South Africa (NERSA) to reject the eThekwini Municipality’s proposal for a significant electricity tariff increase. The municipality had approved a tariff hike of 18.5%, but NERSA deemed it excessive and limited the increase to 15.1%.
According to ActionSA eThekwini Caucus Member Alan Beesley, NERSA’s rejection indicates that the reasons provided by Mayor Mxolisi Kaunda for the high increase lacked validity and did not consider the best interests of the residents. He stated that if the municipality proceeds with the proposed 18.5% increase, it would be in violation of the license agreement with NERSA and could face severe penalties.
Beesley expressed concern that eThekwini was one of only six municipalities out of 257 across the country to approve electricity increases above NERSA’s guidelines. He criticized the municipal leadership, consisting of the ANC, NFP, and EFF parties, for disregarding the burden on already overburdened residents and businesses.
While the rejection provides some relief, Beesley acknowledged that other above-inflation tariff increases, such as rates, water, and sewage, were not subject to regulatory approval. He pointed out that the municipality’s council, led by the ANC, NFP, and EFF, has failed to regulate these increases effectively.
The 3.4% reduction in electricity costs is seen as a victory for ActionSA, which strongly objected to the proposed tariff hikes. The party continues to prioritize the well-being of eThekwini’s residents and businesses.
The news of NERSA’s rejection highlights the need for a balanced approach between economic considerations and the financial strain faced by citizens. It is crucial for municipalities to ensure that tariff increases are reasonable and take into account the impact on local communities.
As eThekwini grapples with the aftermath of the rejected 18.5% tariff increase, it is hoped that the municipality will reevaluate its approach and consider the best interests of its residents. The decision serves as a reminder that excessive tariff hikes can have severe consequences, and it is vital for municipalities to implement fair and sustainable pricing structures.
ActionSA’s proactive stance in opposing the excessive tariff increase demonstrates their commitment to advocating for the rights and well-being of the people they represent. It is a reminder that political parties have a responsibility to prioritize the interests of their constituents and work towards creating a better future for all.
