LETTER | Nersa’s pricing error sparks outrage

DA’s push for independent power gains traction

Eskom has welcomed Nersa's decision to grant its subsidiary, the National Transmission Company South Africa, a licence to operate the transmisison system.
(123RF/ninefoto)

Eric Carter’s critique (“Eskom’s troubles are far from over”, March 3) correctly identified the institutional rot at Eskom, but he is mistaken to think the DA is merely watching from the sidelines of the government of national unity (GNU).

We are right here, hacking at the roots of the energy crisis.

A starting point has been the implementation of the Electricity Regulation Amendment Act on January 1. This was a landmark victory for the DA and civil society that legally mandates a competitive electricity market and seeks to end Eskom’s role as both player and referee in the electricity sector.

While the ministry and Eskom initially attempted a half-hearted “subsidiary model”, persistent DA pressure in the GNU and parliament forced a reversal in the president’s 2026 state of the nation address.

The president has now committed to a fully independent state-owned transmission entity that will own its assets and mobilise the R440bn needed for grid expansion without being a lapdog to Eskom’s monopoly interests. Indeed, the days of its monopoly status are waning rapidly.

On pricing, the DA exposed the National Electricity Regulator of South Africa’s (Nersa’s) R54bn “clerical error” — which ballooned into a R76bn assault on consumer wallets — and mobilised over 120,000 citizens through our “Stop Power Grab” petition.

We demand that those responsible for this unprecedented assault on the finances of ordinary South Africans be held responsible and will vigorously pursue this to the full extent of the law. We continue to push for a rapid review of the electricity pricing policy and greater transparency on how the tariffs are determined.

Nersa’s tariff calculations should be independently audited before they are finalised, and Eskom’s regulatory asset base (the bottom line number Nersa uses to determine the return Eskom is “entitled” to) should be based on depreciated value, rather than modern equivalent asset value.

This last point essentially means South Africans are being asked to pay now for Eskom’s future investment in infrastructure. At the same time, the DA is pushing hard to cut the red tape stifling private generation and fast-track transmission rollout.

The era of South Africans paying for the legacy of state corruption and mismanagement must end. We won’t stop until the lights are on, all citizens have access to electricity, and our electricity bills are affordable.

Kevin Mileham, MP

DA electricity & energy spokesperson

JOIN THE DISCUSSION: Send us an email with your comments to letters@businessday.co.za. Letters of more than 200 words may be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.​

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