City Power’s tariff increase hits the pockets
JOBURG - Locals are alarmed after City power announced that it would increase its tariffs by an average of 7 percent in July.
Some things are unavoidable, such as petrol price hike, tax and sometimes the most terrifying of them all is paying more for electricity.
City Power announced today that it would increase its tariffs by an average of 7 percent and the National Energy Regulator of South Africa (Nersa) approved.
Councillors and residents did not welcome the news at all.
Ward 97 councillor Jaco Engelbrecht said the 7 percent increase will affect residents and businesses.
“I am not happy about this, to increase tariffs with a rate like this is not fair because it will make the cost of business very high… This is a heavy burden to our residents,” Engelbecht informed.
However, Ward 114 councillor Maureen Schneemann feels people should learn how to cut down on electricity.
“Residents should not complain, they should learn to follow Eskom’s tips on how to save on electricity.”
“Yes, the seven percent is heavy, but everyone should know that the whole world is in a financial crisis and they need to learn how to spend,” she added.
City Power spokesperson Sol Masolo said residents should not panic.
“Even though things are going up, residents who can’t afford, can apply for Free Basic Electricity and City Power will assist them.”
Managing director Sicelo Xulu said in a statement that they welcome the decision by the regulator to approve all the tariff increase applications submitted by the utility.
Xulu said, “These tariff increases strike the balance between raising the required capital to improve infrastructure to ensure a steady and uninterrupted supply of electricity, and the economic realities faced by hard-pressed consumers.”
He also informed that City Power took a number of variables into consideration before making the decisions to increase.
Tariff increases across different segments include:
A 9.3 percent tariff increase for time of use for medium voltage was granted and a 0.17 percent increase for time of use tariff increase for low voltage customers was approved.
Medium voltage large power users (LPU) will see a 7.41 percent increase, while low voltage LPUs will see a 7.37 percent increase in the price of electricity.
Conventional commercial users will pay 4.79 percent more for their energy usage, while commercial pre-paid customers will pay 9.40 percent more for their energy use.
Residents who are billed, using conventional means, will pay 7.36 percent more for electricity usage, while prepaid customers will pay 7.45 percent extra for their electricity consumption.
