Judgement reserved in AfriForum’s case against Mogale City’s electricity tariffs

The Gauteng High Court in Pretoria on Wednesday reserved judgement in AfriForum’s case against the Mogale City Local Municipality’s new electricity tariff structure, which raised tariffs at certain usage levels to more than 30%. AfriForum argues that the Municipality had unlawfully implemented Inclining Block Tariffs (IBTs) with an electricity tariff increase. The civil rights organisation approached the court to declare this decision illegal and invalid. Judgment is expected to be delivered on 3 February.

Last year, the Municipality decided to implement IBTs without giving the public the opportunity to challenge this new tariff structure at the annual Integrated Development Plans’ (IDP) public hearings. The Municipality applied a flat-rate tariff structure in the past, but during last year’s public hearings it simply announced a 12,7% increase without making residents aware of the introduction of the IBT structure. This has resulted in some residents and businesses paying an exorbitant amount per unit of electricity.

AfriForum, in collaboration with Krugersdorp Citizens United and members of the Democratic Alliance (DA), gathered evidence about the Municipality’s failure to hold sufficient public hearings on the new tariff structure. Municipalities are obliged in terms of Section 152(1)(e) of the Constitution to encourage community participation in local government affairs.

“The lack of transparency about the new structure, together with the tariff increase, has clearly violated regulatory and ethical standards,” says Deidré Steffens, Adviser for Local Government Affairs at AfriForum. “The implementation of this tariff structure has placed enormous financial pressure on residents and local businesses. It is unacceptable that consumers are unlawfully burdened with tariffs that do not even comply with legal guidelines.”

AfriForum is committed to protecting the interests of the community by ensuring that Municipalities are held accountable for their actions.