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Business Chambers win NERSA legal challenge

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Today the High Court delivered their judgement in favour of the Nelson Mandela Bay Business
Chamber and the Pietermaritzburg and Midlands Chamber, who jointly filed papers earlier this year to legally challenge the National Energy Regulator’s municipal tariff methodology.

The two Business Chambers participated in consultations for more than a year on this issue and took action when Nersa confirmed that it would not review their methodologies without a legal challenge.

“We are very pleased with the judgement which was delivered in our favour by the High Court today.  We believe that this will have the necessary effect on changing the way electricity tariffs are set and that in the near future Municipalities will not be able to add on costs to consumers for their own inefficiencies,” says Denise van Huyssteen, CEO of the Nelson Mandela Bay Business Chamber. “Furthermore this case will potentially impact the determination and approval of electricity tariffs charged by Municipalities across the entire country, ultimately benefiting all South African businesses and consumers.”

She said that this is the second time that the Nelson Mandela Bay Business Chamber has taken on a case of this nature. “We were successful over a number of years in restricting both Eskom and Municipal electricity increases, thus providing savings to businesses and consumers across the country.”

“It was an emphatic judgement and it has been long awaited by commerce and industry”, says MC Botha, electricity tariff expert and legal advisor who acted on behalf of the Chambers and its members. “Whilst the Regulator may seek leave to appeal, we believe that the Judge has handed down a carefully reasoned and sound judgement.”

“This outcome demonstrates that the Chamber’s approach to establishing clusters with businesses in order to collaborate in finding solutions to common problems is effective,” says

David Mertens, the lead of the Electricity Challenge Cluster for the Nelson Mandela Bay Business Chamber. “This win is a positive development and means that the methodology for determining municipal tariffs will be based on the efficient cost of distributing electricity”, says Melanie Veness, CEO of the Pietermaritzburg and Midlands Chamber. “Municipalities will not be permitted to implement excessive tariffs and to utilise this income to fund escalating electricity losses which are the result of their own inefficiencies, among which includes the lack of maintenance of infrastructure as well as rampant electricity and cable theft.”

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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.