A resident from Alberton recently wrote a letter regarding the increases in electricity bills, and more specifically how it affects pensioners.
He said the following; “The mayor failed to consider those that have not had increases in their pensions or increases in salary for many that barely match inflation. I guess it is with trepidation that many read of the much higher than inflation increases for municipal services glibly announced by the mayor. The mayor offered no reasons for these unsustainable and unwarranted increases. We are not receiving a better or improved service but rather the opposite.
I append below a chart based on my actual annual average consumption and payments for electricity. The costs do not include the additional AMP levy that merely makes the situation worse.
*Between 1995 and 2007 my electricity costs increased by 140%.
*Between 2007 and 2015, my electricity costs increased by 330%.
*Between 1995 and 2015, my electricity costs increased by 933%.
*In the 20 year period 1995-2015 the data shows annual increases of more than 10% on 10 occasions, the range being between 10.53% and 51.16%.
*If an average inflation rate for the period 1995-2015 of 6% is assumed then 16 of the twenty increases were above 6%.
The stage for switching off is fast approaching as indigence nears.”
The following is Ekurhuleni Metropolitan Municipality’s (EMM) response.
Please note that it will take quite a bit of time to analyze the graph and its contents, also that there is key information missing, such as what the monthly consumption value is that was used. The general flow of the graph appears reflective of the events.
It will be very difficult to find a city with more benefits to vulnerable customers than EMM in terms of electricity supply. The following two tariffs are available to any residents within the city:
Firstly, on Tariff A (IBT), that is, inclining block tariff, which is suitable to users of electricity, with an average of less than 700 units per month:
*100 units of free basic electricity, in the first block
*Then 500 units of electricity, matching the low Eskom rate exactly
*Then 100 units again matching the Eskom 2nd block rates, apart from cutting off at 700 units, and finally
*A barrier tariff block at a shockingly high rate (above 700 units per month), with the express purposes of guiding high-use electricity customers away from this subsidised tariff.
Secondly, on Tariff B, suitable for any residential customer with consumption higher than 700 units per month
*If on prepayment, zero fixed charge is levied
*And a fair single rate tariff, no matter how many units consumed
*There have not been any charges for many years now.
Tariff A (IBT) therefore, lends itself perfectly suitable to pensioners. A better average rate spanning over 600 units per month will be hard to find if not completely impossible.
The steep increases in the graph attached coincides correctly with the time period in which Eskom started to experience generation problems, and steep tariff increases came as a result. Quickly referencing records, EMM has since 2007 never passed on an increase to its customers higher than that received from Eskom.
