Nersa queries municipalities’ electricity tariffs

Engineering News 2 November 2012.

Municipalities make too much money from electricity sales, which could have dire consequences for industry, national electricity regulator Nersa warned on Friday.

Nersa regulatory specialist Charles Geldard said National Treasury had been informed that the practice of cross subsidisation from electricity sales had reached a tipping point.

He told Parliament’s trade and industry portfolio committee that municipalities procured around 60% of their funding from electricity distribution.

The result was prohibitive energy tariffs imposed on industry and a high risk of business closures and job losses…

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