Solar charges the new piggy bank for cash strapped municipalities – AfriForum

AfriForum is increasingly concerned that financially distressed municipalities are turning to rooftop solar users as a new source of revenue instead of addressing the underlying causes of their financial issues.

Earlier this month, AfriForum formally requested Emfuleni Local Municipality to provide clarity on the legal and regulatory basis for its proposed registration fee and monthly charges applicable to households with rooftop solar photovoltaic (PV) systems. Despite the seriousness of the concerns raised, the Municipality has failed to provide any response.

“Residents deserve certainty regarding the legal basis for these proposed charges, yet Emfuleni has thus far failed to provide any meaningful clarification. The absence of a response raises serious questions about whether the Municipality can justify these charges,” says Deidré Steffens, AfriForum’s Adviser for Local Government Affairs.

AfriForum has also launched a petition opposing the Emfuleni Municipality’s proposed solar registration fee and recurring monthly solar charge. The petition has already garnered close to 1 000 signatures, demonstrating the extent of residents’ concern over the proposed tariffs.

AfriForum’s concerns have now expanded beyond the Emfuleni area. The organisation has launched a further investigation into Thaba Chweu Local Municipality after discovering that the Municipality has introduced a monthly charge of R582,64 for properties with solar installations. What is particularly alarming is that this charge also applies to properties who are not connected to the Municipality’s electricity network, meaning residents are required to pay the monthly fee merely because they have installed solar panels on their properties.

AfriForum is currently investigating whether the Municipality complied with all statutory requirements before introducing the new tariff. This includes determining whether adequate public participation was conducted and whether residents were properly informed of the proposed charge.

In addition, AfriForum has formally request the National Energy Regulator of South Africa (NERSA) to provide its Reasons for Decision (RfD) relating to Thaba Chweu’s tariff application. Although NERSA announced on 30 June that the Reasons for Decision for all municipal tariff applications would be published on its website, the Thaba Chweu Municipality’s Reasons for Decision have still not been made publicly available.

“It is becoming increasingly apparent that some financially distressed municipalities view rooftop solar users as a convenient source of additional revenue. Municipalities certainly have the right to recover legitimate electricity network costs, but any new charges must be lawful, transparent, cost-reflective and properly authorised. Residents cannot simply become the financial lifeline for municipalities that have failed to manage their finances responsibly,” says Steffens.