OUTA calls on NERSA to scrap draft rules

The Organisation Undoing Tax Abuse (OUTA) initiated a petition, earlier this week, to ensure that the public’s voice is heard and to ensure that the embattled consumer is not laden with another unnecessary expense.

“We have received an overwhelming response from the public voicing their concern to these proposed rules. Several thousand signatures have already been received and we are expecting many more,” said OUTA’s Energy Portfolio Manager, Ronald Chauke. “South Africans who have invested in energy saving devices should not be penalised for reducing electricity demand on the national grid nor should they be taxed for becoming environmentally conscious and pursue energy self-sufficiency.”

In addition, OUTA’s analysis of the draft rules indicate that NERSA has added an administrative burden that is uncalled for and would be costly to enforce.

“The administration required by these draft rules is cumbersome and unnecessary. Government should work with its citizens to promote access to reliable energy rather than overburdening them with costs and administrative requirements,” added Chauke.

According to OUTA, due process has not been followed and critical engagement avenues have not been explored. Chauke explains that the important steps not followed include:

1. Applying the easy-to-follow format of the MYPD methodology rules

2. Outlining of proper meaningful participation process (e.g. a schedule of public hearings)

3. Conducting a Socio- Economic Impact Assessment Study

OUTA is ready to engage meaningfully and substantially with NERSA on this matter to ensure a suitable approach. OUTA is eagerly awaiting response to its letter requesting that the energy regulator to withdraw its draft rules.