Mogale City Local Municipality (MCLM) has its hands full with unhappy residents complaining about high electricity bills.
MCLM communication officer Refilwe Mahlangu gave two reasons why bills are higher than before saying consumption of electricity between May and August is usually high for most customers due to higher winter demand and consumption and finally, the new council-approved tariff increases.
“Tariffs for the new financial year commenced on July 1 and were officially implemented on the residents’ 2024 July statement,” she said.
• Also read: Mogale’s tariffs for 2024/ 2025 – electricity up by 12%
Mahlangu then explained the structure as follows:
• For council consideration and public participation processes, the municipality presented two tariff schedules for electricity for example a schedule that was based on the old electricity tariff structure as well as a schedule based on the new electricity tariff structure as the National Electricity Regulator of South Africa (Nersa) had not made a final decision on the new structure
• The court ruling on the matter between AfriForum and Nersa brought the issue of Cost of Supply (COS) being the basis upon which Nersa should approve electricity tariffs into the spotlight and in this regard, Mogale City had complied as the municipality not only sought a general increase but required approval for a new tariff structure
• The municipality’s new electricity tariff structure which includes inclining block tariffs was duly approved by Nersa on June 28 and these tariffs apply from July to June 2025
• The municipality complied with the requirement of submitting a COS study to Nersa, thus the levying of electricity tariffs is legal and valid
“While the municipality noted that the increases may place an additional financial burden on residents, such increases were unavoidable as the previous tariff structure was not cost-reflective and resulted in the municipality not generating sufficient revenue from electricity to meet its costs to supply and distribute electricity to customers.
“It should also be noted that the regulator considered the impact of the new structure on our customers and sought to cushion them from increased electricity tariffs by compelling the municipality to increase tariffs gradually over the next few years. Clients are therefore encouraged to use electricity sparingly to lower their bills as the tariffs are structured on the principle of ‘the more you use, the more you pay’,” Mahlangu concluded.
Mahlangu said approved tariffs and Nersa’s letter of approval are available at https://mogalecity.gov.za/tariffs/.
