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All eyes on Nersa to ensure fair electricity prices for consumers – AfriForum

Deidré Steffens (English)

AfriForum has requested clarity from the National Energy Regulator of South Africa (Nersa) on whether or not the energy regulator verifies the accuracy of data used in municipal cost-of-supply studies. These studies are critical in determining electricity tariff increases.

This follows a significant shift in the regulatory landscape, driven by AfriForum’s court actions, which has for the first time resulted in electricity licensees submitting cost of supply studies alongside their tariff applications. In another first, Nersa has made these studies publicly available, allowing scrutiny by stakeholders and the public. Electricity licensees – the majority of which are municipalities – have now submitted their applications, and Nersa is expected to make its final determinations on 8 May. However, serious concerns have emerged regarding the credibility of these studies.

“The outcome of a cost of supply study is only as reliable as the data that goes into it,” says Deidré Steffens, Advisor for Local Government Affairs at AfriForum. “If municipalities submit inaccurate or inflated data, the resulting tariffs will not reflect the true cost of electricity provision and consumers will ultimately pay the price.”

AfriForum specifically asks whether Nersa independently verifies the data used in these studies and what benchmarks or datasets are used to test the accuracy of municipal submissions.

AfriForum emphasises that the responsibility now rests squarely with Nersa to ensure that these studies are credible and defensible. Should the data prove to be unreliable, Nersa has both the authority and the obligation to reject tariff increases or take further regulatory action against non-compliant licensees.

“This is a defining moment. For the first time, there is transparency in the system but transparency without accountability means very little. All eyes are now on Nersa to determine whether it will enforce compliance and protect electricity consumers from unjustified increases.”

AfriForum will continue to monitor the process closely and take further action where necessary to ensure fair and lawful tariff setting.

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