Court finds Nersa’s municipal electricity increase methodology unlawful

The High Court of South Africa, Gauteng Division, Pretoria Judge EM Kubushi has handed down an order stating that the Guideline and Benchmarking Methodology adopted by regulatory authority the National Energy Regulator of South Africa (Nersa) in approving municipal electricity increases, is unlawful. The October 20 judgement states that the Guideline and Benchmarking method, used by Nersa when approving municipal electricity tariffs, as set out in the record of decision issued by Nersa and entitled ‘Determination of the Municipal Tariff Guideline and Revision of Municipal Tariff benchmarks for the 2021/22 financial year’, and as extended to the 2022/23 municipal year, is hereby declared unlawful, invalid and of no force and effect.