Johannesburg - Mogale City is overcharging residents for electricity in their homes – and it is believed to be the only municipality in the country that is doing that.
“The investigation regarding Mogale City is in progress,” said Charles Hlebela, spokesman for the National Energy Regulator of South African (Nersa), on Friday.
“Nersa has mechanisms in place, such as clawback, to address challenges of licensees that are not implementing tariffs approved by the energy regulator.”
Hlebela wouldn’t specify what action Nersa would take against the erring municipality or how its customers would be reimbursed.
Municipalities that sell electricity must have their tariffs approved by Nersa.
Mogale City did not respond to requests for comment.
A month ago, Parliament was told that three municipalities were overcharging for electricity: Mogale City in Gauteng, Buffalo City Metro in East London and Inxuba Yethemba Local in Cradock.
In a written response to a DA question in Parliament last month, Minister of Co-operative Governance and Traditional Affairs Pravin Gordhan said Nersa had identified three municipalities charging above the approved tariff.
Buffalo City and Inxuba Yethemba had reverted to implementing the Nersa-approved tariffs, said Gordhan.
Hlebela confirmed this. “Buffalo City Metro and Inxuba Yethemba are implementing tariffs approved by the energy regulator.”
Gordhan said Nersa was discussing the problem with Mogale City, which continued to overcharge.
“The municipality is implementing higher tariffs for both conventional and prepaid domestic block tariffs,” he said.
The Electricity Regulation Act “provides that a licensee may not charge a customer any tariff other than that determined or approved by the energy regulator as part of its licensing conditions”, said Gordhan. - The star