AfriForum challenges unlawful levy for customers no longer connected to the Thaba Chweu electricity grid
AfriForum demands that the Thaba Chweu Local Municipality and the National Energy Regulator of South Africa (NERSA) explain and rectify a solar panel levy that the civil rights organisation believes to be unlawful, irrational and unreasonable.
In a legal letter issued to the municipality, the organisation raises serious concerns about the municipality’s new solar panel levy appearing on residents’ municipal accounts. This levy of R 582.64 is being charged on all properties that choose to disconnect their properties from the electricity grid and solely rely on solar panels thus a levy for using the sun.
AfriForum maintains that this levy may amount to an unlawful tax and that there is no evidence that this levy were preceded by a lawful and transparent public participation process. Questions also remain about whether the tariffs are supported by an appropriate cost-of-supply study and whether their adoption and approval complied with applicable municipal and electricity legislation.
“This matter is about more than disputed charges on municipal accounts. It concerns the fundamental principle that municipalities may levy only lawful, rational and properly approved tariffs. Thaba Chweu and NERSA must account for these charges, particularly where residents who are completely disconnected from the electricity grid are expected to pay for a service they do not receive,” says Arlo van Heerden, AfriForum’s District Coordinator for the Lowveld.
AfriForum initially wrote to the municipal manager on 20 July, requesting documentary proof of the process followed in adopting the tariffs. This included copies of the relevant cost-of-supply study, public notices, council resolutions, comments received from the public and records showing how those comments were considered. According to AfriForum, the municipality has failed to respond.
“AfriForum has observed a significant increase in obscure levies and tariffs being imposed by municipalities across the country. This appears to be a new trend among municipalities seeking to charge more money from residents without delivering any corresponding improvement in services. Residents cannot be treated as cash cows who must now make up for years of municipal debt, mismanagement and abuse,” says Deidré Steffens Adviser for Local Government Affairs at AfriForum.
The municipality and NERSA have been given ten days from the date of AfriForum’s letter to provide satisfactory explanations and supporting information. If they fail to do so, AfriForum intends to approach the High Court for appropriate relief.
