DA again questions NERSA's expertise to determine electricity price after R54bn blunder

JOHANNESBURG - The Democratic Alliance (DA) has again questioned the National Energy Regulator of South Africa (NERSA)'s capacity and technical expertise to determine electricity prices following a multibillion-rand blunder.

This follows NERSA's admission and apology for a R54 billion error in calculating electricity tariffs.

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The clerical error will cost consumers when tariffs increase by more than 8% per year for the next two financial years, instead of between 5 and (?) percent originally agreed on.

While the mistake was identified before the tariffdetermination was made in January, it wasn’t rectified.

Mayoral committee member for energy in Cape Town and DA member Xanthea Limberg said, "It does beg the question whether the regulator is adequately capacitated with the necessary technical expertise to properly scrutinise cost of supply studies that need to form part of tariff applications, that Eskom makes and that municipalities make."

She said the regulator cannot go unchecked for the blunder.

"I think, far too often, we are facing a position where the regulator isn’t necessarily stepping up and facing their constitutional mandate, which has very serious implications."