The National Energy Regulator of South Africa (NERSA), has given the Tshwane Municipality seven days to explain why it wants to increase fixed charges to customers.
NERSA says the municipality’s current application for a hike is inconclusive. The move comes after senior officials failed to justify how they came up with their new cost structure.
Tshwane Mayor Councillor Steven Mokgalapa says they will comply with whatever is required, although they don’t understand why NERSA is only now asking for more information now, when they submitted their application for increased tariffs more than five years ago.
“We should have been told that we need to submit the cost of service distribution study, which has never been done and which no municipality has submitted. We have submitted latest by 2014, so it is just suspect at this point in time. But what we will do is I will ensure that I meet with the senior management this morning to ensure that we do the compliance that we need to do.”