Are you paying more for electricity than other towns? Part 1

Estella Naicker 
Senior investigative journalist – Caxton Community Newspapers (NKZN) 

Depending on which Northern KwaZulu-Natal (NKZN) town you live in, your electricity bill could be 37% higher than that of a resident in a neighbouring town, using exactly the same amount of power.

A comparative study of electricity costs in the licensed distribution areas of five NKZN municipalities – Newcastle, Alfred Duma (Ladysmith), Endumeni (Dundee), AbaQulusi (Vryheid) and Inkosi Langalibalele (Estcourt) – reveals how much cheaper or more expensive electricity is, depending on where you live.

We asked, “Which town do you believe charges its residents the most for electricity?”, readers’ answers differed according to the town they live in. A general mistrust in local government and the feeling of being ‘ripped off’ leads most to believe they must be paying more for electricity as corrupt officials and politicians aim to line their pockets with ratepayers’ money.

“Newcastle (pays more), obvious… just to cover their debt,” says Mduduzi Nhlabathi, who resides in Newcastle.

“This is a rip-off. Ladysmith (pays more)!!!! Something must be done,” commented Sbongile Nxumalo.

“Estcourt is worse,” believes Nozipho KaMashobane.

“It has always been Endumeni (Dundee),” declares Cecilia Gold.

All five municipalities have opted for a step tariff instead of a flat rate. This means the charge per unit of electricity increases as your consumption increases.

A step tariff is designed to encourage residents to save electricity and to ensure that the poor, who may only require electricity for basic needs like cooking and lighting, pay a lower more affordable tariff than a homeowner who, for instance, runs more than one geyser, a pool pump and air-conditioners.

Basically, the less you use, the lower the tariff you will pay.  Residents in Dundee and Estcourt do not pay a basic or availability charge.

This is a set monthly cost that residents in Newcastle, Ladysmith and Vryheid must pay, regardless of whether they consume electricity or not. The availability charge for electricity in Newcastle is more than double the basic charge in Ladysmith or Vryheid.

Working on the step tariff model as well as the basic charge for conventional meters, we calculated three different hypothetical electricity accounts for each town. The first is based on a consumption of 1000kwh usage for a given month (average consumption).

The second is based on a consumption of 500kwh usage (low consumption) and the third is based on a consumption of 1500kwh usage (high consumption).

Average and high-usage consumers paid the most in Ladysmith, where residents pay roughly 30% more for electricity than residents in Estcourt, where electricity costs are lowest.

In order from most expensive to least expensive, based on 1000kwh usage, Ladysmith was most expensive, followed by Vryheid, then Dundee, then Newcastle and Estcourt was cheapest, with residents in Ladysmith paying 32% more for electricity than residents in Estcourt.

Look out for Part 2 of this story later today.

ALSO SEE: #Loadshedding: Estcourt is in the light

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