Consumers are set to be hit by proposed energy laws changes

South African power customers have been experiencing crippling rises in electricity costs, exacerbated by the increases municipal authorities charge over and above the tariff increases granted to Eskom.

The changes envisaged in these Bills could have a profound effect on South African consumers and the way the sector will be regulated, says Shamilah Grimwood, a partner at law firm White & Case LLP. The policy decision, as reflected in the ERA Bill, to favour municipalities, she says, will effectively mean that municipalities may continue to load their electricity supply prices with additional levies or surcharges without oversight by Nersa. "In my view," Grimwood told Mail and Guardian, "this will exacerbate the very wide discrepancy that exists between municipalities in terms of quality and pricing of electricity services."

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