|

AfriForum takes Mogale City to court over electricity tariffs

AfriForum has filed an urgent court application against the Mogale City Local Municipality in the Gauteng High Court in Pretoria over the increase in electricity tariffs for the 2024/2025 municipal financial year.

The case, scheduled to be heard on January 28, 2025, arises from the municipality’s implementation of Inclining Block Tariffs (IBTs) without communicating this new tariff structure to the public during the municipality’s Integrated Development Plan (IDP) roadshows. Previously, the municipality applied a flat-rate tariff structure. During the roadshows, the municipality merely communicated a 12.7% increase and never mentioned the introduction of the IBT structure. With the IBT structure, tariffs could rise to nearly 30% at certain usage levels. AfriForum argues that this lack of transparency and the excessive increases violate regulatory and ethical standards.

After the implementation of the new tariff structure, AfriForum was contacted by numerous members who reported steep increases in their electricity bills. Working together with Krugersdorp Citizens Unite, AfriForum gathered evidence highlighting the municipality’s failure to ensure adequate public participation regarding the new tariff structure. This collaboration strengthened the legal argument against the municipality’s lack of transparency and procedural compliance.

AfriForum is requesting the court to order the following:

  1. That all resolutions approving electricity tariff increases exceeding those in Schedule 3(a) be declared unlawful and invalid.
  2. That the municipality be prohibited from implementing any tariff other than those specified in Schedule 3(a) which is the 12.7% flate rate that was communicated during public consultation meetings.
  3. That the municipality be compelled to refund or credit consumers for any overcharges already levied.

According to AfriForum, the unlawful tariffs have led to excessive charges for residents and businesses in Mogale City, placing significant financial strain on them. “It is unacceptable that consumers are being unlawfully burdened with tariffs that do not comply with legal guidelines,” says Morné Mostert, AfriForum’s Manager for Local Government Affairs, one of the applicants.

The respondents in the case, which include the Mogale City Local Municipality, its council, and the executive mayor, must notify their intention to oppose the application by January 10, 2025, and file their answering affidavits by January 17, 2025.

“AfriForum is committed to protecting the interests of the community by ensuring that municipalities are held accountable for their actions,” says Mostert.

Similar Posts