Who and what is AfriForum?

AfriForum is an Afrikaans civil rights organisation that protects the rights of minority groups at national as well as provincial level, and anyone who can identify with AfriForum’s principles and objectives may join the organisation. AfriForum’s community plan focuses on mobilising communities to thus take control of their own streets and neighbourhoods again. AfriForum ensures that your constitutional and civil rights are recognised and protected at national level.

Wie en wat is AfriForum?

AfriForum is ’n Afrikaanse burgerregteorganisasie wat die regte van minderheidsgroepe op sowel nasionale as provinsiale vlak beskerm, en enigiemand wat met AfriForum se beginsels en doelstellings kan identifiseer, mag by die organisasie aansluit. AfriForum se gemeenskapsplan fokus daarop om gemeenskappe te mobiliseer om só weer beheer terug te neem oor hul eie strate en woonbuurtes. AfriForum verseker dat jou grondwetlike én burgerregte op nasionale vlak erken en beskerm word.

Local Government Affairs Media statements | Media statements

AfriForum wants clarity from NERSA about compliance with court ruling

ByAfriForum 22/04/202422/04/2024

The civil rights organisation AfriForum requested that the National Energy Regulator of South Africa (NERSA) confirm whether it still obliges municipalities to submit cost of supply studies when they apply for tariff increases.

The High Court in Pretoria declared the use of price bands and guidelines illegal in October 2022. This ruling means that municipalities must now submit cost of supply studies before they may introduce rate increases.

The cost of supply framework was established to protect consumers from excessively high rates. Previously, NERSA annually passed on benchmarks and guidelines to municipalities, but the result of this was that municipalities did not review the actual cost of electricity supply. A cost of supply study determines what the current costs are for the supply of electricity and a tariff increase can then be more accurately determined accordingly.

However, it appears that NERSA is not complying with the court order as they have sent communication to municipalities where they are now providing municipalities with a new revenue requirement template that they can use when applying for rate increases – this instead of the cost of supply study as the court ordered.

According to Morné Mostert, Manager of Local Government Affairs at AfriForum, the use of an approved template rather than the cost of supply study is a concern as it could mean that NERSA acts contrary to the court order. “We are looking for verifiable figures to indicate what municipalities’ rates should be. A cost of supply study is the starting point to steer municipalities and NERSA in the right direction.”