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NERSA to Hold Hearing on Tshwane Tariff Application

July 10, 2019

Department of Energy

10 July 2019

A public hearing on the City of Tshwane Municipality’s application for an average municipal tariff increase of 13.07% and the restructuring of its tariffs will be held on 11 July 2019.

The energy department published notification of the National Energy Regulator’s (NERSA) hearing in Government Gazette 42569.

In April 2019, NERSA called for comment on the municipal tariff guideline, benchmarks and proposed timelines for the municipal tariff approval process for the 2019/20 financial year.

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.

Earlier this year, NERSA granted Eskom a 9.41% tariff increase for the 2019/20 financial year.

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 13.07%.

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