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Pretoria - The National Energy Regulator of South Africa (Nersa) on Monday changed its tune as to when municipalities could disconnect consumers' electricity.
Last month Nersa declared that it was illegal for municipalities to cut consumers' electricity if accounts for other municipal services were in arrears.
Nersa spokesperson Charles Hlebela said Nersa could impose a fine of R2m or 10% of their turnover on intractable municipalities - whichever amount was the greater - or it could suspend an electricity distributor's licence.
This action he believed to be standard practice for municipalities across the country.
Municipalities' contention that in terms of the Municipal Systems Act they could promulgate regulations to consolidate municipal accounts was rejected by Nersa, which declared municipal regulations could never carry more authority than an act.
But on Monday Hlebela however said that this stance "had not properly reflected the energy regulator's decision."
The official position is now:
- The licence holder (municipality) may not cut off a client's electricity for non-payment of other municipal services unless it has promulgated a municipal regulation in this regard.
- The provisions in the Municipal Systems Act and the Electricity Regulation Act are not in conflict.
- The relevant municipal regulations create a "payment condition" according to the Electricity Regulation Act.
- Nersa has the power to resolve a dispute in terms of the Electricity Regulation Act.
Jaap Kelder, the mouthpiece of the National Ratepayers' Association (NRU), which is coordinating protests over poor service delivery countrywide, says it is clear that Nersa has buckled under pressure from municipalities.
He reckons that municipalities should draw a distinction between consumers with poor histories of payment, in which case they can for instance demand advance payments, and loyal payers whose deposits they hold.
"In my view it's not the aim of the act to link the payments for other services to payments for electricity. Similarly the municipality cannot disconnect your electricity for failing to pay your car licence."
A while ago the NRU obtained a temporary court interdict against the local municipality on behalf of the residents of Bethlehem regarding such disconnections. According to Kelder, Nersa's interpretation of the acts will be tested on December 4 when the matter will be heard for a final court ruling.
Willie Spies, legal representative for the citizens' rights initiative Afriforum, claims Nersa has found a way to renege on its responsibility to enforce municipalities' compliance with particular legislation.
He insists that credit control measures such as these disconnections cannot be legally implemented in terms of the Municipal Systems Act once consumers have declared a dispute with the municipality.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.