The Nelson Mandela Bay Business Chamber welcomes the decision of the National Energy Regulator of South Africa (Nersa) to limit Eskom’s 2017 tariff increase to only 2.2%.
All electricity users countrywide are set to benefit from this significantly reduced electricity price increase.
Nersa’s latest decision follows a ruling in the Gauteng High Court against a 2016 decision by Nersa relating to the Multi Year Price Determination (MYPD). The Nelson Mandela Bay Business Chamber championed the rights of commerce and industry in Nelson Mandela Bay by actively joining the challenge which was spearheaded by the High Energy User Group in the Nelson Mandela Bay.
The Nelson Mandela Bay Business Chamber has for years been at the forefront of this fight against unrealistic electricity price increases through the consistent lobbying efforts by our Electricity and Energy Task Team.
The Gauteng High Court ruling found the most recent Regulatory Clearing Account (RCA) adjustment to Eskom’s tariffs to be “irrational, unfair and unlawful”.
The combined saving resulting from the ruling for the country has been conservatively calculated to be between R50-billion to R60-billion, said Nelson Mandela Bay Business Chamber Deputy President, MC Botha.
“This new tariff structure will benefit the country at large because it will not only result in reduced electricity prices for businesses and homes, but it will also secure thousands of jobs by making industry more competitive and enabling an investor friendly environment for the economy to grow.”
“Holding government institutions accountable has resulted in a massive win for not only industry, but ordinary electricity users. We were the only Business Organisation in the country to take a tough and effective stand against this,” Botha said.
High Energy User Group Spokesperson David Mertens said that this victory demonstrates that business and consumers should exercise their rights when they need protection.
“Recent revelations in the Denton Report about Eskom’s mismanagement confirm that our challenge was the right decision. We hope that the successful challenge will unite business and industry to support efforts which help promote a competitive environment which benefits the economy and the well-being of all South Africans. We are relieved that Nersa made the appropriate call and we see this decision as a new beginning for the energy regulator,” Mertens said.
The end-consumer in Nelson Mandela Bay will benefit from the reduced electricity price when the new tariff comes into effect in July 2017