Salga voices concern about impact of possible higher electricity tariffs on municipalities

http://www.engineeringnews.co.za/article/salga-voices-concern-about-impact-of-possible-higher-electricity-tariffs-on-municipalities-2018-04-19

Salga voices concern about impact of possible higher electricity tariffs on municipalities
19TH APRIL 2018

BY: MARLENY ARNOLDI
CREAMER MEDIA ONLINE WRITER

During public hearings being held to enable the National Energy Regulator of South Africa (Nersa) to determine whether to allow power utility Eskom to recoup R66.6-billion under the Regulatory Clearing Account (RCA) mechanism, the South African Local Government Association (Salga) has expressed concern that further electricity tariff hikes will disadvantage municipalities and communities.

Salga on Thursday stated that Eskom’s revenue requirements were causing uncertainty with regard to the future electricity pricing path in South Africa and, in turn, causing instability to the economy.

Salga and its members have assessed the RCA applications submitted by Eskom for the 2014 to 2017 financial years and have raised a series of concerns with Nersa.

Nersa’s public hearings are being held across South Africa, having started in Cape Town on April 16 and scheduled to end in Johannesburg on May 11.

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