Mogale City is aware of an article published by IOL online news on 30 June 2024 stating that the municipality missed the deadline to submit a Cost Of Supply (COS) to the National Energy Regulator of South Africa (Nersa). According to the article, this prevents the municipality from increasing its tariffs, and if implemented making any such increases unlawful and invalid.
This article and similar others were triggered by a High Court Ruling in a matter between AfriForum and Nersa wherein order 3 of the order prohibited Nersa “from considering and approving municipal electricity tariffs for the 2024/2025 municipal financial year and subsequent financial years where the municipalities’ applications for the approval of municipal electricity tariffs are not in accordance with the Notice to Municipal Licenced Electricity Distributers, 17 November 2023”.
The court ruled that Nersa should consider, and if legally compliant, approved tariff increase applications by municipalities who had submitted their (COS) timeously and unfortunately, from the 66 listed municipalities per the founding affidavit submitted to the High Court by the applicant (AfriForum), Mogale City was not part of the list of those who had submitted.
The court further prohibited municipalities from increasing their electricity tariffs if they had not received the necessary approval by Nersa. While Mogale had no legal obligation to submit its name to AfriForum to be included in its list nor could we have envisaged that such a list had the potential of jeopardising the finalisation and approval of our electricity tariffs, it has become necessary to explain the omission of our municipality’s name on this list due to the panic that it has caused as follows:
- Mogale City did duly submit its COS to Nersa timeously on 19 May 2023 and 12 February 2024
- The municipality had been in constant contact with Nersa prior to and following the submission of the COS
- Nersa acknowledged our COS submission
- We also complied with all legislative requirements in relation to tariffs for the 2024/2025 financial year
- The municipality has further obtained confirmation through its Legal Division that on 30 June 2024, Nersa lodged an application for leave to appeal the court order granted by Judge De Vos AJ, in particular order 5, 6 and 7 of the Court Order. In terms of Rule 49 of the Uniform Rules of Court, an appeal automatically suspends the operation of the order pending the outcome of the appeal.
We are therefore pleased to inform residents and accountholders that the municipality has complied with the COS requirements and electricity tariffs for the 2024/2025 financial year, which have been duly approved by Nersa.
Please visit our tariffs page to view approved tariffs and click here to read Nersa’s letter of approval.