AfriForum questions legality of cost of Emfuleni’s new solar PV registration

AfriForum has written to the Emfuleni Local Municipality requesting urgent clarity on the legal and regulatory basis for proposed new charges applicable to households with rooftop solar photovoltaic (PV) systems. AfriForum has identified several concerns regarding the proposed charges and questions the legality of the Municipality’s proposed tariff, that will include a recurring monthly charge for residential solar users.

The Municipality recently announced plans to introduce a once-off solar registration fee of R2 400 and a recurring monthly charge of R463 for residential solar users. This proposal has sparked widespread concern among residents, who have already invested thousands of rands into the solar systems.

According to AfriForum, municipalities may recover legitimate electricity network costs, but any new tariff or levy must comply with the Constitution, the Municipal Systems Act, the Municipal Finance Management Act and the applicable electricity regulatory framework.

Following a review of Emfuleni’s Draft Integrated Development Plan (IDP), the tariff application submitted to the National Energy Regulator of South Africa (Nersa), and publicly available information, AfriForum has identified several concerns regarding the proposed charges. These include the apparent absence of a policy framework in the IDP, uncertainty over whether the new fees are consistent with the Municipality’s tariff application to Nersa, the lack of a completed cost-of-supply study, and the apparent absence of any by-law amendments authorising the proposed charges.

AfriForum has requested the Municipality to provide the relevant council resolutions, legal opinions, tariff calculations, cost-of-supply studies, public participation records and any correspondence with Nersa relating to the proposed solar charges.

“The Municipality cannot simply introduce additional charges because residents have chosen to invest in lawful rooftop solar installations. Before residents are expected to pay new fees, the Municipality must demonstrate that the charges are authorised by law, supported by a proper cost-of-supply analysis and adopted through a transparent public participation process. If these requirements have not been met, the legality of the proposed charges is questionable,” says Morné Mostert, AfriForum’s Manager for Local Government Affairs.

AfriForum says it remains committed to constructive engagement but will continue to scrutinise the legality of the proposed charges to ensure that residents are not subjected to tariffs that have not been introduced in accordance with the law.