COMPETENCY: COUNCIL
IT WAS UNANIMOUSLY RESOLVED:
1. That the continued validity of the Cost of Supply (CoS) study completed during the 2024/25 financial year, be noted.
2. That the proposed 2026/27 electricity tariffs, informed by the CoS study and benchmarked against the Eskom-approved increase, be considered for submission to NERSA.
3. That Council notes that the updated cost of supply study outcome indicates an adjustment of approximately 21.9% to allow the Municipality to align the current existing tariffs to cost- reflective levels.
4. That the Finance Section ensure compliance with all publication, public participation and regulatory submission requirements.
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PURPOSE:
To obtain Council approval of the proposed 2026/27 electricity tariffs, informed by the approved Cost of Supply (CoS) study and benchmarked against the Eskom-awarded tariff increase, for submission to the National Energy Regulator of South Africa (NERSA).
To submit the 2026/27 proposed electricity tariffs to Council that will be used to apply to NERSA for approval and to comply with the Court Order of 4 December 2025 between AFRIFORUM NPC (Applicant), NERSA, SALGA, Eskom Holdings SOC Limited and the 192 municipalities in South Africa (Respondents).
RECOMMENDATIONS:
1. That the continued validity of the Cost of Supply (CoS) study completed during the 2024/25 financial year be noted.
2. That the proposed 2026/27 electricity tariffs, informed by the CoS study and benchmarked against the Eskom-approved increase, be considered for submission to NERSA.
3. That Council notes that the updated cost of supply study outcome indicates an adjustment of approximately 21.9% to allow the Municipality to align the current existing tariffs to cost- reflective levels.
4. That the Finance Section ensure compliance with all publication, public participation and regulatory submission requirements.