Nersa ‘concerned’ about effect of power price on industry, says specialist

Business Day Live 6 March 2013.

THE National Energy Regulator of South Africa (Nersa) was concerned about the general price of electricity and its impact on industry in municipal areas, regulatory specialist for electricity Charles Geldard said on Wednesday in an address to Parliament’s trade and industry committee.

Manufacturers have complained bitterly about the electricity tariffs imposed by municipalities, which rely on this as an important source of revenue. In terms of the Municipal Systems Act municipalities are allowed to add a surcharge for commercial and industrial customers.

Mr Geldard said the funding model of municipalities needed to be addressed. For example all metro budgets forecast a steadily increasing reliance on revenue from electricity.

“The proportion is increasing by about two to three percentage points a year,” Mr Geldard said…

More…

Advertisements