Question NW815 to the Minister of Mineral Resources and Energy
09 April 2024 - NW815
Herron, Mr BN to ask the Minister of Mineral Resources and Energy
(1) With regard to the difference in electricity tariffs approved by the National Energy Regulator of South Africa (Nersa) and implemented by the City of Cape Town (CCT) Metropolitan Municipality (details furnished), and the subsequent legal action by the CCT (details furnished), what is the status of the court application to review Nersa’s decision for the 2022-23 municipal financial year; (2) whether, following the failure of the CCT’s urgent High Court application regarding the electricity tariffs for the 2023-24 municipal financial year, the CCT has taken any further legal steps with regard to the 2023-24 Nersa tariff decision; if not, why not; if so, what are the relevant details; (3) whether the CCT obtained an interim decision from Nersa and/or a High Court order, which permits them to charge a tariff hike in excess of the Nersa decisions for each municipal financial year, pending the final determination of their review(s); if not, (a) under what authority did the CCT increase its tariffs in excess of the Nersa approved increase, (b) can the CCT rely on any statutory provisions for the tariffs that residents have been paying since 1 July 2022, (c) does his department offer residents who have been overcharged, any recourse and (d) what is the estimated and/or actual total amount in excess of the approved Nersa tariffs of electricity charged to residents of Cape Town, since 1 July 2022; (4) how has Nersa dealt with the complaints and objections it received from the residents of Cape Town during 2023 when the above-approved tariff hike became public knowledge; (5) whether Nersa intends taking any action against the CCT as a licensed distributor that allegedly violates a Nersa decision on electricity tariffs; if not, what is the position in this regard; if so, what (a) action and (b) are the relevant details in cases where Nersa had acted in such cases?
Reply:
1. The matter is awaiting judicial management to determine the date for the hearing. The exchanges between the parties have been completed save for the filing of Heads of Arguments which the date for their submission will be determined by the judicial management.
2. The City of Cape Town Metro took the decision of NERSA for a judicial review and the matter is also going to be subjected to judicial management as the exchanges between the parties has been completed.
3. There is no court interim order received by the City of Cape Town Metro to charge a tariff in excess of NERSA approved tariffs.
a) The City of Cape Town Metro unilateral implementation of unapproved tariff is unlawful and in breach of its distribution licence condition.
b) NERSA is not aware of any the lawful instrument that can entitle the City of Cape Town Metro to unilateral implement unapproved tariffs.
c) Electricity Regulation Act, 2006 enables customer to refer a complaint to NERSA for dispute resolution or for NERSA to sit as a tribunal to enforce compliance or a full drawn out legal process before courts.
d) NERSA has never done an audit of it because of a variety of challenges.
4. As per NERSA’s procedures in the case of non-compliance with licence conditions, NERSA requested a meeting with the City of Cape Town Metro, however the request was turned down by the City, stating that they have a lodged a review case on this matter with the High Court. NERSA is the respondent in the case. It was NERSA’s considered view that since the matter is before Courts, it was prudent to await outcome of the Court proceedings before proceeding with its processes.
5. Currently the City and NERSA are in court dealing with tariff matters of 2022/23 and 2023/24. The two matters are at a judicial management stage before a judge and the outcome of the two matters will address the effect of the conduct of the City on customers and what remedies should be implemented to correct the wrong that have been done and the period within which such remedies should be implement.