GOOD Press Statement by Anton Louw,
GOOD Cape Town Councillor Responsible for Finance
22 July 2023
The National Electricity Regulator, NERSA, says it approved a 15.1% tariff increase for the City of Cape Town for the 2023/23 financial year, and that “no licensee is empowered to charge a tariff that has not been approved by NERSA”.
NERSA was responding to a set of questions I submitted following GOOD’s request for an intervention by the regulator.
GOOD has been leading a campaign to expose the truth behind the City’s electricity profiteering.
The City of Cape Town applied a 17.6% tariff increase this month, which was preceded by a publicity campaign falsely claiming that its mark-up was cheaper than recommended, and that it was giving consumers a break.
In fact, Cape Town is only one of six municipalities that has refused to comply with the 15.1% increase threshold. Earlier this month, NERSA ruled against the eThekwini Municipality’s proposed increase of 18.49% and only granted a 15.1% increase.
According to NERSA, should licensees such as the City of Cape Town feel aggrieved by its decisions on tariffs there are remedies in section 10(3) of the National Energy Regulator Act, 2004 (Act No. 40 of 2004), which provides for the institution of judicial review proceedings in the High Court.
The regulator told GOOD that the city “has been afforded an opportunity to respond to the complaints lodged against it by its customers”, and that NERSA was also conducting its own assessment and verification of the tariff currently being charged by the city.
The City of Cape Town had acknowledged receipt of NERSA’s correspondence, and had committed to provide a holistic response on the matter. NERSA had requested the complainants to provide evidence (in the form of bills or pre-paid tokens).
The city pays about 70% of its electricity income to Eskom. The rest of the money is used elsewhere. The City of Cape Town is the most cash-flush in the country, with savings of approximately R10-Billion.
Many Capetonians, like their sisters and brothers elsewhere in the country, are suffering the profound indignities of unemployment and extreme poverty. Many South African homes are barely lit, not because of loadshedding but because residents can’t afford to buy any units.
GOOD calls on Mayor Geordin Hill-Lewis to demonstrate that the real struggles of these people are of more consequence than public relations. The City of Cape Town, like National Government, must dig deep into its budget, weed out historical but non-essential allocations, and give the people a break.
The city must take residents into its confidence on what it actually spends on bulk electricity, so that residents can fairly judge if they’re getting bang for their buck.
Media Enquiries:
Anton Louw, GOOD Cape Town Councillor Responsible for Finance
Cell: 082 377 3335
Email: anton@cisfs.co.za
Samantha Jackson, GOOD Acting Media Manager
Cell: 083 550 9875
Email: media@forgood.org.za