NERSA seeks comment on 2019 municipal tariff guidelines

municipal tariff 1
08 Apr 2019

The National Energy Regulator (NERSA) has called for comment on the municipal tariff guideline, benchmarks and proposed timelines for the municipal tariff approval process for the 2019/20 financial year.

A notice inviting comment until 12 April 2019 has been published in Government Gazette 42373.

NERSA is mandated to regulate the electricity, piped-gas and petroleum pipeline industries.

A consultation paper has been issued outlining all the key issues considered in the analysis of the municipal tariff review.

NERSA must approve an annual percentage guideline increase for municipalities.

Municipalities require this before they draw up their applications for new tariffs which are submitted to NERSA.

The indicative guideline helps municipalities during their budgeting process.

Earlier this year, NERSA granted Eskom a 9.41% tariff increase for the 2019/20 financial year.

When considering price applications from municipalities, NERSA will also take municipalities’ overall financial and technical performance into account.

The guideline stands at an increase of 13.07%.

Municipalities applying for an increase that is above the guideline will have to justify their increases to NERSA.

The municipal tariff guideline and benchmarks will be approved on 25 April 2019.

(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)
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