The Freedom Front Plus (VF Plus) repeatedly warned in council meetings that the governing ANC/EFF coalition’s poor management of the electricity supply system would plunge the Metro Council and its residents into financial chaos.
This follows a ruling by the High Court setting aside the electricity tariff increase for Ekurhuleni’s 2024/2025 financial year, which had been approved by the National Energy Regulator of South Africa (NERSA).
The High Court ruled, among other things, that Ekurhuleni should go back to the drawing board and compile transparent cost calculations for electricity supply, which should be taken into account when recalculating tariff hikes.
Acting Judge Anthony Millar did not explicitly forbid cross subsidising in his ruling per se, but the case did have its origins in the fact that large consumers have to pay an excessive increase while small businesses and households are subsidised.
Ekurhuleni has until 30 June to table amended calculations, which could mean that households may have to retrospectively pay for electricity consumed more than two years ago already.
The overturning of NERSA’s approval of Ekurhuleni’s electricity tariffs is damning evidence of the ANC/EFF coalition’s incompetent governance.
It is unacceptable that ordinary consumers have to bear the brunt of political maladministration and regulatory failures.
The ruling also exposes Ekurhuleni to potential refunds, legal action and loss of revenue – which could further destabilise an already fragile budget.
When contractual and regulatory processes fail, it is ultimately taxpayers who are left footing the bill.
The Freedom Front Plus wants to make this very clear: Residents cannot be forced to bear the financial consequences of the ANC/EFF coalition’s maladministration.
Businesses and households have the right to predictable, equitable and lawful electricity prices; they do not deserve to be used as guinea pigs in financial experiments undermining economic stability.
The Freedom Front Plus will not allow the ANC/EFF coalition’s failures to plunge Ekurhuleni even deeper into a financial and service delivery crisis; the party remains steadfast on the side of residents and businesses that deserve stability, affordability and accountable governance.
