DA calls NERSA’s tariffs “extortionate” whilst continuing to overcharge CPT residents

11 September 2023

The Good Party has noted the court case between NERSA and the Democratic Alliance being heard in the North Gauteng High Court today.

The DA is challenging the energy regulator’s national electricity tariff hike.

The irony of the DA calling NERSA’s tariff hike “extortionate” is the definition of the pot calling the kettle black.

The DA says the “people across South Africa can no longer afford the out-of-control price hikes that the ANC national government continues to force onto them across the board.”

But in the Western Cape, it is the DA-led government that is putting consumers under pressure by charging exorbitant and illegal rates.

The truth is the DA-governed City of Cape Town has been overcharging electricity consumers, without the electricity regulator’s approval, for more than a year.

For the 2022/23 financial year Nersa approved a 7.4% tariff increase, but Cape Town implemented a 9.6% increase.

The City launched a high court application in December 2022 seeking to review and set aside NERSA’s approval for the 2022/2023 municipal financial year. That dispute is unresolved after mediation failed.

For the 2023/24 financial year, Nersa approved a 15.1% increase, but the City implemented a 17.6% tariff hike on top of its hiked price from the previous year. This effectively equates to a 19.7% tariff increase this year.

By the GOOD Party’s estimation, credits legally due to residents, by the City, is just under R330-million.

And to make matters worse, the City is using taxpayers' money to fight their decision to overcharge in court.

Residents of Cape Town are paying through the nose for electricity and the litigation to defend these illegal charges.

The GOOD Party maintains our call for the City to pay back millions of Rands it has been overcharging for electricity for more than a year.

Issued by Anton Louw, GOOD: Cape Town Councillor responsible for Finance, 11 September 2023