Latest news with #Sapoa
The Citizen
2 days ago
- Business
- The Citizen
Nersa's mistakes will hit you hard
Eskom gave a presentation to Nersa, proposing the number of tariffs be reduced from 10 to three. The courts have ruled in favour of Eskom in almost all of its applications against Nersa, and the trend looks set to continue. Picture: Shutterstock Moneyweb has learnt that consumers will have to cough up at least R40 billion more for Eskom following a settlement between the utility and the energy regulator Nersa. This pertains to mistakes Nersa's made in several decisions regarding Eskom's revenue and tariffs. This amount may increase as Eskom has launched a fresh challenge to Nersa's latest decisions regarding the utility's revenue and tariffs for the current and the next two financial years. Eskom's court application is the latest in a string of challenges to Nersa decisions, almost all ruled in favour of Eskom. Moneyweb has learnt that several such applications were settled between the two parties in May. This was not widely communicated at the time. The settlement, which was made an order of the court, pertains to clawbacks spanning the financial years 2015 to 2021. ALSO READ: Ekurhuleni metro and Nersa lock horns over electricity tariff discrepancy Clawbacks The clawback mechanism is designed to retrospectively compensate either the utility or its customers for variations in the assumptions underlying the revenue determination, such as sales volumes. The compensation is done by adjusting electricity tariffs in following years. Eskom disputed the amount Nersa decided it was entitled to claw back in each year from 2015 to 2021. Following the settlement Eskom is entitled to recover in total R40 billion more from consumers for underrecovery over the period due to mistakes made by Nersa. In terms of the order, Nersa will decide on the timing of this recovery. ALSO READ: Nersa's municipal tariff process flawed, says Sapoa Nersa still making mistakes? Eskom now alleges that Nersa's latest revenue and tariff determination for the current and next two financial years is also flawed. This will be on the agenda of Nersa's electricity subcommittee during a special meeting on Wednesday (16 July). It follows an application by Eskom to the Gauteng Division of the High Court to have the decision reviewed and set aside. Nersa announced in January that it had approved revenues of R384.6 billion for Eskom for the current financial year, which translated to an average percentage increase of 12.74%. This took effect on 1 April. ALSO READ: The silent 77.5% rise of your electricity bill The allowable revenue approved for 2026/7 is R409.5 billion, which translates to an average increase of 5.36% and for 2027/8 it is R435.8 billion, which translates to an average increase of 6.19%. This is considerably lower than the amounts Eskom applied for, which would have meant increases of 36.15%, 11.81%, and 9.1% in the three consecutive years. Following Nersa's publication of the reason for its decision early last month, Eskom filed an application to have the decision reviewed and set aside specifically regarding Nersa's treatment of the Regulatory Asset Base (RAB). Moneyweb has reliably learnt that Nersa has not yet indicated whether it will oppose the application. Presumably the meeting on Wednesday will make a recommendation to the electricity regulator, which will then take a final decision. The formulation of the agenda point however indicates that Nersa may have accepted Eskom's argument and is open to settling the matter. It reads: 'Correction of error on the Eskom sixth multi-year price determination decision (MYPD6) Regulatory Asset Base section and proposed settlement.' ALSO READ: Nersa approves 12.7% electricity tariff hike for Eskom Eskom's arguments In an affidavit supporting its court application, Eskom CFO Calib Cassim sets out in detail – some of it quite technical – the mistakes that Eskom contends Nersa has made. This includes attaching a zero value to several operational power stations, including Koeberg. He shows that the value attached to the RAB is key to determining the returns Eskom is entitled to – and that Nersa's downward adjustments of the RAB in each of the three years dealt with in the tariff application cost the utility about R30 billion in total. Cassim says that Nersa, in taking the decision, exceeded its powers and acted inconsistently with its own methodology and with an earlier court order dealing with the same subject. ALSO READ: 30% electricity tariff increase is a reality, says Erasa He states that Nersa's decision is irrational and unreasonable. Cassim points out that Nersa's flawed approach to the RAB only applies to the application by Eskom's generation business. Those of the National Transmission Company of South Africa, a wholly owned subsidiary dealing with transmission, and the distribution business, were dealt with correctly, in Eskom's view. In addition, there are discrepancies between some of the numbers in the press release Nersa issued in January announcing its decision and those in the document issued in June setting out the reasons for its decision. ALSO READ: Eskom proposes further tariff restructuring to ensure 'transparency and fairness' Cassim further argues that the condition Nersa set for its approval of the utility's revenue – that it submit a revaluation of its RAB, with the first clawback application following the 2025/6 financial year – is unrealistic and impossible. Such a revaluation takes at least 30 months and is an expensive exercise, according to Cassim. Any adjustments in Eskom's favour will be reflected in future increases in electricity tariffs. This comes against the backdrop of widespread concern about the affordability of electricity, with Minister of Electricity and Energy Kgosientso Ramokgopa saying that South Africans must increasingly choose between buying food and buying electricity. He said even middle-class South Africans are battling to afford electricity. This article was republished from Moneyweb. Read the original here.
The Citizen
01-07-2025
- Business
- The Citizen
Tshwane to consider demolishing houses in illegal developments
Many cannot be 'regularised' – report. Doomed? Kleinfontein is not among those that can be formalised through the provision of 'services and infrastructure' as it falls outside the urban edge. Picture: Kleinfontein Facebook page One of the options in addressing illegal developments in the City of Tshwane is to demolish these structures, according to a special sub-committee appointed by mayor Dr Nasiphi Moya to deal with the growing problem. These developments mostly comprise luxury houses built on properties that have not been correctly zoned and subdivided, no township establishment has taken place, and building plans have not been approved by the local authority. According to a report by the sub-committee served before the mayoral committee on 18 June, which Moneyweb has seen, more than 10 000 houses may have to be demolished, as they are situated outside the nine 'developments' that the committee says are capable of being regularised. The regularising of the nine 'developments', which collectively have 8 431 illegal structures on them, is still dependent on the availability of engineering services for water, electricity, and other municipal services – and is therefore not a given. ALSO READ: Kleinfontein is not an illegal township, maintains CEO Financial means Whether the City of Tshwane, with its known financial restraints, will have the necessary funds to install such services remains to be seen. The sub-committee hopes to take its proposals to the full city council at the end of July. It was established 'to formulate a standard and fair approach to addressing illegal developments'. Moneyweb earlier reported that multi-million-rand houses are being built in several such 'developments' spread over the city. In one of the Leeuwfontein 'developments' north of Pretoria, plots are openly being sold for as much as R600 000 each, and since last year a new phase has been opened in Haakdoornboom which already boasts several houses. ALSO READ: Kleinfontein can't escape the law any longer 'Illegal properties undermine investments' The South African Property Owners Association (Sapoa) called for action 'against the growing issue of illegal multi-million-rand property developments in Tshwane' late last year. Neil Gopal, CEO of Sapoa, stated: 'Illegal developments undermine the investments of compliant property owners, who face a range of negative impacts – from declining property values to increased crime rates and service interruptions. We are particularly alarmed at the normalisation of flouting development regulations, which ultimately decreases oversight in property development.' The Tshwane sub-committee identified 17 such developments, including the 'Boere-Afrikaner' community of Kleinfontein, which has been in existence for decades. It comprises at least 600 houses, an old age home, a school and shopping centre. Last year disgruntled residents obtained a high court order that compelled the metro to enforce town planning legislation in Kleinfontein. According to the board that runs Kleinfontein, its applications have been with the council for an extended period with no feedback. The sub-committee, however, reports that it could only find an 'old DFA [Development Facilitation Act] application that they wish to resuscitate'. Kleinfontein is not among those that may be regularised as it falls outside the urban edge, the committee found. ALSO READ: 'Obvious sore point'- EFF to march to exclusive Afrikaner township Kleinfontein Allowing vs erecting The committee distinguishes between those 'developments' where the property owners themselves erect illegal structures and those, such as Kleinfontein and Leeuwfontein, where the owners allow others to erect structures. The illegal structures total almost 20 000 collectively – with only Haakdoornboom, Leeuwfontein 1, 2 and 3, Marula View, Mooikloof, Mashate Gardens, Onderstepoort and one near Prestige College outside Hammanskraal possibly capable of being regularised. Only three of these currently have provision for water and only one for sewerage. Two of these structures can get electricity from Tshwane substations and four are situated in Eskom supply areas. The three Leeuwfontein 'developments' have no bulk services for electricity, but form part of the planned future Roodeplaat primary supply area, according to the report. The sub-committee sets out six options for dealing with the illegal developments: Obtain an eviction order; Application to court for the demolition of illegal structures, which comes with a warning that 'once an order for the demolition of the structures is granted by the court, the municipality does not have a discretion on whether or not to act on that order'; Regularising, which 'would involve formalising the township by providing essential services and infrastructure, and integrating it into the municipal planning framework'; Conducting inspections and issuing compliance notices; Penalties and fines, which 'can serve as a deterrent to prevent future illegal settlements'; and Community engagement 'to understand their needs and [work] towards providing legal housing solutions'. ALSO READ: Exclusive Afrikaner township defends legality after court orders Tshwane to enforce bylaws Increase in rates bill The report mentions the possibility of recategorising the properties where owners themselves erect illegal structures as 'non-permitted use' for the purposes of levying property rates. That comes with a drastic increase in their rates bill. Currently these 'developments' are mostly categorised for agricultural purposes or 'undetermined' with massive underrecovery of rates compared to even residential rates that are payable by compliant home owners. Where owners allow others to erect illegal structures, the city is currently pursuing the criminal prosecution of the 'owners' and applying for interdicts and demolition and the adjustment of their rates, according to the report. It however states that 'challenges are experienced with regard to determining valuations based on illegal land use and the non-permitted use rating'. The report does not expand on the nature of these challenges. Legislation clearly provides for such properties to be valued as if compliant. Tshwane, for example, adjusted the categorisation of some Kleinfontein properties last year, which resulted in the total rates bill for the community increasing from R5 230 in August to R126 148 in September. ALSO READ: Opposition in Tshwane offers 'solution' for Kleinfontein rates problem The board has declared a dispute in this regard. Four of the 17 illegal developments are situated partially or completely on land belonging to the City of Tshwane, three on land belonging to national government, and the rest on private land. The report does not address ways of streamlining and expediting own planning approvals for compliant developers. Dawie Malan, who developed Mooikloof Estates, previously told Moneyweb that established developers don't want to trade in Tshwane any longer due to the difficulty in dealing with the metro and officials whose conduct he describes as obstructive. This article was republished from Moneyweb. Read the original here.
The Citizen
26-05-2025
- Business
- The Citizen
Sapoa to challenge Joburg CCTV by-law in court
Says city 'is exceeding its powers' (and welcomes City of Cape Town's decision to amend its budget). Footage may now only be released to police officers – which could put an end to private security operators using surveillance technologies 'to great effect'. Picture: Supplied The South African Property Owners Association (Sapoa) will challenge a controversial by-law adopted by the City of Joburg (CoJ) in February to regulate privately-owned CCTV camera systems facing public spaces. A court application has been issued and is being formally served on the city, which means the city can no longer attempt to enforce the by-law pending the outcome of the litigation, Sapoa said in a statement on Friday. The contentious Privately-Owned Closed Circuit Television Surveillance Camera by-law has met with resistance from a wide spectrum of stakeholders who question: The process followed to adopt it; The city's mandate to regulate the matter; The impact it will have on the fight against crime; and The impact it will have on the economic viability of the private security sector. The by-law has been operational since its adoption in council on 28 February, despite opposition from the DA and ACDP. It provides for the obligatory registration of all CCTV camera systems operational within Johannesburg that have an angle of view to public places, the annual renewal of approval, regular inspections of all CCTV cameras by city officials, the payment of fees in respect of applications and renewals, as well as the fact that footage may only be released to a South African Police Service (SAPS) or Johannesburg Metropolitan Police Department (JMPD) officer. 'Footage obtained from CCTV cameras may no longer be shared by the property owner or security provider,' Sapoa says. ALSO READ: Joburg's CCTV bylaw fails residents and security firms Hobbling the fight against crime Vumacam, the largest CCTV operator in the province, previously said the introduction of the by-law will set back the progress made with the use of technology to fight crime. Vumacam has a large network of cameras linked to a control room from where it can activate private or public security forces to incidents. According to ITWeb it received a total of 118 764 events via its integrated intelligence operations centre in March alone. 'Of the total number of events, 8 197 situations were escalated to the control room, leading to the arrest of suspects in connection with multiple armed robberies across Johannesburg.' Vumacam said in a statement in April it 'believes that the legislation in its current form places significant, unlawful restrictions on privately owned CCTV cameras, which are onerous and overly restrictive to commercial, private, and residential camera owners'. It said the by-law creates 'significant uncertainty for operators like Vumacam'. 'The challenges introduced to operating its services will make them economically unviable in the current economic climate. By prohibiting the existing use of CCTV by businesses, the by-laws will have a detrimental effect on many industries across the city and may limit the technology's efficacy and further growth. 'The new by-laws also appear to limit how the private security industry can use CCTV to protect the communities they serve,' it adds. 'Vumacam believes this is a step backwards in the critical fight to protect all citizens and grow the economy, as many private security operators have used surveillance technologies to great effect in the last few years,' Vumacam said. The DA called the by-law 'nothing more than a hidden tax on safety and security, disguised as regulation'. Sapoa says despite the by-law being in operation for more than two months, no registration forms are available, and the tariffs have not been published. ALSO READ: Concerns over private CCTV cameras in Joburg Legal advice The commercial property industry body questions the promulgation process and is convinced, after obtaining legal advice, that the city is exceeding its powers by trying to regulate a matter relating to safety and security, privacy, and other constitutional rights, which do not fall within the constitutional mandate of local government. Sapoa CEO Neil Gopal says the Constitutional Court has noted that municipalities are primarily tasked with service delivery and this by-law has nothing to do with that. 'Imagine a crime-ridden City that can't even provide basic service delivery, or fix a leak, wants to add another admin-intensive application and registration process to their arsenal of already failing initiatives,' DA caucus leader Belinda Kayser-Echeozonjoku said. Gopal said commercial property owners would be remiss in their legal duty if they did not safeguard their properties by making use of CCTV cameras. ALSO READ: Gauteng e-Government expands CCTV network in townships 'Legislative overreach' 'To now decree that such systems must not only be registered and approved, especially given the administrative backlogs experienced in the City, but also that footage may only be shared with authorised officials, constitutes legislative overreach by the City,' he said. In doing so: 'The by-law violates property owners' right to access of information, as enshrined in the Constitution.' Gopal said Sapoa has decided to proceed with challenging the by-law in court to have it declared unconstitutional and invalid and to have it set aside. Sapoa asked its members to notify the organisation if they are aware of any attempts to enforce the by-law pending the litigation. ALSO READ: Sapoa calls for action on illegal developments in Tshwane Cape Town rates matter Meanwhile, Sapoa has welcomed City of Cape Town's decision to amend its latest budget. Gopal expressed hope that in its anticipated amended budget proposals, the city accedes to Sapoa's earlier requests. The organisation objected to: The proposed 7.96% increase in property rates, proposing that the increase be capped at 5%; The introduction of a city-wide cleaning levy, which it considers to be an unlawful and unconstitutional additional tax; The calculation of fixed water charges on the basis of property valuation, and the introduction of a basic sewerage charge (it proposed a return to calculations based on connection size); The proposed electricity charges, which it says boil down to a 16% increase for large commercial users; and The lack of a tariff calculator for commercial clients, without which it is impossible for the business sector to assess the impact of the new budget on their finances. Sapoa met with Cape Town Mayor Geordin Hill-Lewis last week, with Gopal thanking the mayor and his team for the opportunity to constructively engage with the city. 'Our meetings were robust but respectful, and we assured the City of the continued support of Sapoa,' he said. 'It is however important to note that the commercial property sector is an important constituency which should not be ignored, as continuous unreasonable and unsustainable increases in rates and other charges will naturally lead to businesses disinvesting in the city.' This article was republished from Moneyweb. Read the original here.
News24
25-05-2025
- Business
- News24
Warmer colours, more plants: SA employers go for homey offices to lure staff back
SA offices are adopting designs inspired by nature, with trending greens, blues, browns, and beiges to lure staff back on-site after working from home. Warmer tones replace outdated cool palettes, with Pantone's Mocha Mousse – a warm brown – as Pantone colour of the year. Home-inspired office design reflects the mood of post-Covid office work. For more financial news, go to the News24 Business front page. In a bid to get employees out of their homes and back on-site after the Covid-19 pandemic, many companies are upping the office offering by creating more homey spaces that offer more than just a cubicle. Colour plays a key role, according to Linda Trim, director of Giant Leap, workplace design consultants and according to Trend Group, office interior designers, there is a 'growing trend towards earthy and organic tones'. The South African Property Owners Association (Sapoa) shows a strengthening of overall vacancy rates from 16.1% to 13.7% from the fourth quarter of 2022 to the fourth quarter of 2024, indicating an increased demand for office space. 'As more companies call employees back to work and return-to-work policies are common, they are also rethinking workplace design in hopes of boosting productivity and motivation. New uses of colour will be a big part of that, in what comes next for the workplace,' said Trim. 'The thoughtful application of colour in the workplace is a confluence of psychology, brand alignment and functional design. As organisations continue to evolve and embrace new ways of working, colour remains a powerful yet underutilised resource in shaping workplace culture and performance,' said Tandi Jacobs, general manager at ID Internal Developers. Trend Group "strategically employ[s] shades of blue in areas demanding concentration, leveraging its proven ability to enhance focus and create a sense of calm. Supplied/ Trend Group Greens, blues and neutral tones are popular choices for office interiors, according to Trim, also that nature-inspired design (biophilia) is on trend right now as it creates a relaxed atmosphere that helps create a homey feel. 'Blues and greens are associated with calmness and stability. These hues reduce anxiety and promote sustained focus, making them ideal for spaces requiring concentration, such as private offices, quiet work areas or meeting rooms,' said Jacobs. It's all in the plants An integral part of the biophilic interior style, live greenery, is also a popular design element and, according to Trim, is a big part of getting people back to work. The one common theme we are seeing in all our office designs of late is greenery,' said Jacobs. According to Jacobs, the biophilic colour palette promotes a calm, comforting environment that does not cause overstimulation. These include not only greens and blues, but also warm browns and soft beiges. According to Trend Group, bold accents are also in. Deep blues, rich oranges, and vibrant yellows add visual interest and personality. Jacobs believes colour can transform the workplace into a more human, functional and forward-looking environment. In the recent past, a cooler palette of whites and greys were on trend, but clients increasingly prefer warmer, neutral palettes like creams and warm greys, according to Jacobs. 'This could be because it creates a warmer, homely look and feel, and could be aligning more on the Pantone colour of the year, Pantone 17-1230 Mocha Mousse and more recently, Cinnamon Slate 2113-40,' she said. 'People got very used to their homely environments in Covid, and wanted a similar feel from the office on their return,' added Trim.
