By Sihle Mavuso
Forty-four local municipalities in KwaZulu-Natal face a major headache: they have to refund electricity consumers for fees levied on them since the beginning of July.
The municipalities range from poor ones in rural areas with no rates base to better-off ones in industrialised urban areas, This could cost them millions of rand.
The headache comes after AfriForum took Nersa (the National Energy Regulator of South Africa) to court and won.
AfriForum argued that it was unlawful for municipalities to increase electricity levies without conducting cost-of-supply studies.
Last week, Nersa failed in its bid to be allowed to appeal the North Gauteng High Court ruling.
According to BusinessTech, AfriForum has since indicated that it would apply to have the 112 municipalities nationwide that implemented the hikes to cough up and refund consumers.
According to the court ruling, only three municipalities in KwaZulu-Natal were able to strictly follow the law and conduct the required study.
These are eThekwini (Durban), Umhlathuze (Richards Bay-Empangeni) and KwaDukuza (Stanger) local municipalities.
Local municipalities sell electricity to consumers after buying it from Eskom.
While eThekwini is considered the 11th district of the province, it is also classified as a metro, enabling it to enjoy the privileges of a local municipality.
Among the municipalities that may have to refund their electricity consumers are Msunduzi (Pietermaritzburg, the provincial capital), Alfred Duma (Ladysmith), Ray Nkonyeni (Port Shepstone), Newcastle, Pongola, Jozini, Mtubatuba, Umsinga, and Umvoti (Greytown).
Pictured above: Nersa lost a court battle against AfriForum.
Source: Facebook
