City of Cape Town threatened with court action if it doesn’t lower electricity tariffs
Cape Town - Consumer rights group Electricity Prices Must Fall has threatened to go to court if the City refuses to drop its electricity tariff.
The threat comes after scores of people representing civil society, unions and political parties came together on Saturday at a protest outside the Civic Centre where they handed over a petition demanding the City cut its 17.6% electricity tariff hike.
They want the City to bring its tariff in line with the National Energy Regulator’s (Nersa) suggested figure of 15%.
Co-organiser of the protest Sandra Dickson said: “We hope that we made enough of an impact to actually get through to the hardened hearts of the City officials.
“We will not stop, we are gathering more information. And we are also looking at the option of taking the City on in court about this issue.”
Meanwhile, GOOD Party secretary-general Brett Herron said that the party had placed its lawyers on standby to prepare to launch a class action on behalf of Cape Town residents to force the City to “pay back millions of rand it has been overcharging for electricity for more than a year”.
Herron said the City was presently fighting Nersa in court on two fronts seeking the court’s permission to charge Cape Town consumers more than anyone else in the country for electricity.
For the 2022/23 financial year Nersa approved a 7.4% tariff increase, but the City of Cape Town implemented a 9.6% increase.
Herron said that in one of the cases the City was trying to convince the High Court that it was lawful to ignore Nersa’s rates.
“In the second case the City launched an urgent application in the Gauteng High Court in June 2023 to get Nersa to approve its extortionary rates.”
He said the urgent application was struck off the court roll and the City had to pay costs.
Herron said that if the City failed to convince the courts that it had the right to charge whatever it wanted for electricity, it would have to be forced to pay back the unlawful profits it was accruing.
“Among the demands made in the Electricity Prices Must Fall petition, which was handed over to City officials, are one that wants pensioners to automatically receive rebates that must include free units similar to those given to indigent households.
There was also a demand that fixed charges and levies should be waived for pensioners and that affordability must be the only criteria for the City when setting its tariffs.
Electricity Prices Must Fall spokesperson Natasha Gerste said: “Now is the time to make our voices heard.
“Instead of the City working for us, it feels like we are working for the City, which is generating income at the expense of the many who are suffering from these high tariffs.”
Gerste said they had told the City they were expecting a written response to all their demands in their petition by Friday, September 1, from the office of the City manager.
In a press statement issued before the protest, the City justified its tariffs and said they were “a legal Council-approved tariff in terms of the Municipal Finance Management Act”.
The statement, put out by the City’s media department, repeated its claim that Nersa’s recommendation of 15.1% for municipalities was not sustainable for the City, and would lead to a shortfall in excess of R500 million for 2023/24 alone.
Meanwhile, the Lotus River, Ottery, Grassy Park Ratepayers’ and Residents’ Association (Logra Civic) has said the matter of unfair home user charges for water and electricity was weighing heavily on the minds of ratepayers in the area
Logra treasurer and spokesperson Philip Bam said: “Home owners were asked by the City to save water during the drought. The need to save electricity also resulted in loss of revenue to the City.
“Obviously, revenue is affected, but Logra believes the City should find alternative ways of saving money rather than placing an unfair financial burden on its poor citizens.”
Bam said that Logra Civic had previously suggested that the City trim its budget by cutting salaries and performance bonuses paid to City officials and councillors.
mwangi.githahu@inl.co.za