Municipal tariff excessive, unlawful, says Eskom in support of business chambers

Eskom on Thursday came out in support of a court application by the business chambers of Nelson Mandela Bay and Pietermaritzburg, aimed at ensuring that municipalities charge end-users only what the law permits for electricity and nothing more. The Pretoria High Court heard the application during a virtual hearing. Energy regulator Nersa and the City of Joburg are opposing it.

Municipalities want another slice of the pie, this time from IPPs Advocate Matthew Chaskalson SC for Eskom emphasised that the Constitution, the EPP and ERA distinguish between electricity tariffs and surcharges, which are essentially municipal taxes that may be levied upon tariffs. Nersa is mandated to approve electricity tariffs on the basis of what it costs a municipality to provide the service as well as a reasonable return.

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