LEGAL CHALLENGE: Power bills soar as Nelson Mandela Bay heads to court over electricity tariff hikes
As the DA prepares to face the municipality in court over the hikes, and political parties, civic organisations and business leaders question the reasoning behind the ever-increasing power price, small, home-run businesses say they are at risk of losing clients as they struggle to absorb costs from rising tariffs.
The Democratic Alliance (DA) plans to take Nelson Mandela Bay Municipality to court over recent electricity tariff hikes, arguing that the increases were implemented without adequate public participation. The party led by mayoral candidate Retief Odendaal is seeking an interdict from the High Court in Gqeberha to set aside the municipality's latest electricity tariffs until a better public participation process is conducted.
Small, home-run businesses in the region are struggling to absorb the nearly 30% increase in their electricity bills, which have risen from around R15,000 per month to more than R20,000. This has led to price increases for customers and a decline in business. Even some well-established businesses, such as bakeries and salons, are feeling the pinch.
Marion Claassen, who lives in Gelvandale, is finding it difficult to manage her disability grant and rising electricity costs. She has had to buy electricity in smaller units and sometimes even borrow power from neighbors during months when her grant isn't enough. Other residents have had to cancel their annual price increases to retain existing clients, but face the difficult decision of absorbing the additional costs.
The DA claims that the municipality's public participation meetings were unclear and misleading, and demands that the 10.95% tariff increase be referred back to the National Energy Regulator of South Africa (Nersa) for review. The DA cites a 2014 high court judgment where the city was found to have failed to comply with constitutional and statutory obligations regarding public participation in its budget process.
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