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Salga rejects claims of electricity overcharging

According to BDLive, South African Local Government Association (Salga) has rejected claims that most metros and municipalities impose big mark-ups on Eskom's tariffs. Salga was invited by Parliament's trade and industry committee on Friday to give its views on claims that prohibitive electricity price hikes were making business uncompetitive and resulting in businesses closing down.
This comes as businesses claim that price hikes are damaging growth and hiring prospects and amid accusations that municipal electricity tariffs have risen 400% and more. Eskom has applied to the National Energy Regulator of South Africa (Nersa) for tariffs to increase 16% a year over the next five years.

Salga municipal infrastructure services director Mthobeli Kolisa said claims of overcharging were based on a misinterpretation of the data. While insisting that the five metros, which distribute more than 80% of municipal electricity, comply with Nersa's guidelines, Kolisa acknowledged there were problems with some small municipalities which found it difficult to generate sufficient revenue to cover their costs, BDLive reports.

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Posted on 19 Nov 2012 13:59