The National Energy Regulator of South Africa NERSA has announced that it is launching a market-wide inquiry into the rising fixed and capacity charges levied by electricity distributors, including Eskom and municipalities, in response to mounting concerns from customers and industry stakeholders, reports Cape town Etc .
The inquiry, published in the regulators Terms of Reference on 25 September, will focus on the formulation, justification and impact of charges such as fixed fees, Eskoms generation capacity charge GCC, legacy charges and other associated costs.
According to NERSA, the process aims to establish how distributors formulated these charges, which added substantially to the already approved 12.74 Eskom tariff hike, and to evaluate their effect on households, businesses and municipalities. The regulator will also assess whether the charges align with approved tariff methodologies.