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NERSA Seeks Comment on Municipal Tariff Guideline Increase

March 25, 2020

National Energy Regulator

The National Energy Regulator (NERSA) has called for comment on the review of the municipal tariff guideline increase, benchmarks and proposed timelines for the 2020/21 municipal tariff approval process.

A notice inviting comment until 9 April 2020 has been published in Government Gazette 43125.

NERSA is mandated to regulate the electricity, piped-gas and petroleum pipeline industries.

A consultation paper has been issued outlining all the key issues considered in the analysis of the municipal tariff review.

NERSA must approve an annual percentage guideline increase for municipalities.

Municipalities require this before they draw up their applications for new tariffs which are submitted to NERSA.

The indicative guideline helps municipalities during their budgeting process.

When considering price applications from municipalities, NERSA will also take municipalities’ overall financial and technical performance into account.

The guideline stands at an increase of 6.24%.

Municipalities applying for an increase that is above the guideline will have to justify their increases to NERSA.

Licensees are encouraged to submit their draft tariff applications as soon as the Guideline and Benchmarks Consultation Paper is published.

A public hearing on the key issues highlighted in the consultation paper is tentatively scheduled for 16 April 2020.

The final municipal tariff guideline and benchmarks will be published on 23 April 2020 and approved on 29 April 2020.