National Energy Regulator (Nersa) fudges electricity prices – again

Nersa has let the public down once again, despite a Constitutional mandate to balance the interests of electricity producers and consumers to ensure affordable electricity for all South Africans – “In fact,” says Ted Blom, a partner at Mining & Energy Advisory, “it is doing exactly the opposite”.

A distinct prerequisite in respect of Nersa’s role is a duty to regulate electricity prices transparently. By abolishing the public hearings around municipal applications for above average price increases, Nersa is denying the public access to information submitted by these municipalities, as well as the public’s right to comment on gross inefficiencies and corruption.

“Nersa is again acting contra bonis mores (against the public interest) and this must be challenged in a court of law,” says Blom.

A previous attempt in 2016 at upholding public rights was denied by the courts as the complaint arose after the increased price announcement. At that time Eskom & Nersa claimed it would be impossible to unscramble the egg.

This time Blom is acting pre-emptively as the lone voice calling for reason and has dispatched an urgent letter of demand to Nersa calling for sanity. “I just hope the public awakens to this fraud being perpetrated right under our noses similarly to the Zuma corruption which almost killed the economy”.

It is a crying shame that under the new Ramaphosa Government, we still have to fight the same old battles with Nersa’s action emerging as another onslaught against clean and transparent governance.

Ted Blom

Partner: Mining & Energy Advisory
www.miningandenergy.co.za

Tel 082 857 2534