# Summary

- Link: https://dearsouthafrica.co.za/the-review-of-the-municipal-tariff-guideline-increase-benchmarks-and-proposed-timelines/summary-2/
- Published: 2020-03-27T15:32:52+02:00
- Author: dearSA

[ MUNICIPAL TARIFF GUIDELINE INCREASE](https://dearsouthafrica.co.za/the-review-of-the-municipal-tariff-guideline-increase-benchmarks-and-proposed-timelines/)

1. EXECUTIVE SUMMARY
 1.1. The National Energy Regulator of South Africa (NERSA)
is the regulatory authority of the energy sector in South Africa and its mandate
includes the regulation of the electricity supply industry. In terms of section 
4(ii) of the Electricity Regulation Act, 2006 (Act No. 4 of 2006) (‘the Electricity
Regulation Act’), the Energy Regulator must regulate electricity prices and tariffs.

1.2. The Energy Regulator, on an annual basis, approves a percentage guideline
 
increase and reviews the municipal tariff benchmarks. The guideline increase assists
the municipalities in the preparation of their budgets, while the revised benchmarks
are used in the evaluation of the municipal tariff applications.

1.3. On 7 March 2019, the Energy Regulator made a determination on Eskom’s
 fourth
Multi-Year Price Determination (MYPD4) and the Regulatory Clearing Account (RCA)
application for Year 5 (2017/18) of the MYPD3. Moreover, Eskom’s application to 
the High Court for an urgent implementation of a revised price increase with effect
from 1 April 2020 was unsuccessful. As a result, the Energy Regulator subsequently
approved Eskom’s Retail Tariff Structural Adjustments (ERTSA) on 12 March 2020.

1.4. The municipal tariff guideline increase is developed based on Eskom’s
 approved
bulk price increase of electricity to municipalities and the increase in the municipalities’
cost structures. Hence, the approval of the municipal guideline increase is subsequent
to the determination of the ERTSA. The benchmarks are developed to ensure that tariffs
across municipalities are not vastly different.

1.5. The Energy Regulator is requesting that stakeholders comment on the
 percentage
guideline increase, the benchmarks, the proposed timelines and the specific issues
raised, as set out in this consultation paper. The comments should be addressed 
to: Mr Thabo Tshabalala at The National Energy Regulator of South Africa, Kulawula
House, 526 Madiba Street, Arcadia, Pretoria or emailed to: municguideline@nersa.
org.za. The deadline for the submission of comments is 9 April 2020.

1.6. NERSA will hold a public hearing (tentative) on the key issues highlighted 
in the consultation paper on 16 April 2020, in line with the terms of section 4(
3) of the Promotion to Administration Justice Act, 2000 (Act No. 3 of 2000).