BLOEMFONTEIN – The DA has drafted a new Bill that will stop unfair electricity price hikes across South Africa, in all municipalities.

A notice to introduce this Bill was published in the Government Gazette on Friday 16 October.

Kevin Mileham, the DA Spokesperson on Electricity and Energy, said at a media conference in Bloemfontein on Tuesday the DA was using its place in Parliament to fight against unreasonable and unfair electricity price hikes.

“We are making it possible for the people of South Africa to join this fight with an opportunity to comment on this proposed Bill.”

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Mileham said that currently the astronomical price hikes South Africans faces each year includes extra for Eskom and National Energy Regulator of South Africa (Nersa) calculation mistakes, the recovery of arrears, and guesstimates of the cost to supply electricity.

“No South African struggling to make ends meet should be forced to pay for the mistakes of Eskom or Nersa, and no South African should be forced to pay for guess-work by municipalities about what it might cost to supply power for the coming year. Instead, this must be replaced by actual cost-of-supply calculations.”

Mileham said this is part of the cost of living crisis in South Africa.

“It is a part that the DA is going to fight.”

Consumers can now submit comments to advance this Bill through parliament to protect South Africans from unfair electricity tariff increases.

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Electricity prices have risen well above inflation for years, placing increasing pressure on households and businesses.

“What becomes unreasonable is that consumer are expected to pay for billions of rands in additional costs because of errors in electricity tariff calculations. Every unit of electricity, or every bill received, contains a big portion of paying back for mistakes made in last year’s tariff.”

“The recent R54,7 billion correction to Eskom’s revenue determination illustrates the problem. Errors in Nersa’s calculations have resulted in further increases being included in future electricity tariffs, including the 8.83% increase approved for 2027/28.

“Consumers of South Africa had no part in making those errors, yet we are expected to pay for them with no apology. When regulatory mistakes of this magnitude can be passed on to consumers, there is clearly a gap in the protections provided by our existing laws. The DA seeks to close this gap.”

The courts have already found fault with NERSA’s approval of increases without properly verified cost information and adequate public participation.

The DA’s Bill (The Electricity Regulation Amendment Bill) proposes changes to the Electricity Regulation Act to prevent similar situations from arising in future.

Mileham explains that the Bill will close these loopholes by requiring that tariff applications must be supported by a scientific and demonstrable cost-of-supply study, which Nersa would be required to verify and publish for public comment; it will prevent tariffs being applied retrospectively; and affirms the legal principal of finality, thus requiring judicial review for amendments to approved tariffs.

The draft Bill is now open for public comment. Written submissions may be sent to electricityrabill@parliament.gov.za, copied to legislation@da.org.za by 15 November.