Nelson Mandela Bay Business Chambers NPC and Another v National Energy Regulator and Others (63393/2021)
Nelson Mandela Bay Business Chambers NPC and Another v National Energy Regulator and Others (63393/2021) [2022] ZAGPPHC 778 (20 October 2022)
The court found that NERSA's Guideline and Benchmarking Method for approving municipal electricity tariffs is unlawful and invalid as it fails to comply with the tariff principles set out in section 15(1) of the Electricity Regulation Act. The Method does not ensure that tariffs are cost-reflective for individual municipalities, nor does it enable efficient licensees to recover the full cost of their licensed activities, including a reasonable margin or return. Instead, the Method relies on averages and generic norms, resulting in tariffs that may be higher than the actual costs incurred by m…
Source excerpt
- Electricity Regulation Act
- Tariff Setting
- Cost Reflective Tariffs
- Public Interest Review
- Legality Principle
- Municipal Services Pricing