Electricity price escalates in July
Consumers will pay more for electricity as from 1 July 2015.
As of 1 July this year, residents will have to fork out an additional 12.2 per cent on their electricity bill.
According to the National Energy Regulator of South Africa (Nersa), the decision for the increase was made last year November because they want to allow Eskom to increase the price of bulk electricity.
City Power’s Hloni Motlaung said municipalities will now have to pay 14.2 per cent more. “Nersa has granted City power approval to implement a residual time of use tariff system,” he said.
Motlaung added that “this will allow the utility to price electricity at different rates during the day to encourage consumption during off peak hours to reduce the cost to supply and lessen the pressure on the national grid. The objective is to improve the continuity of supply and to pass the savings on to customers.”
Despite the positive outlook from municipalities and Nersa, residents are upset and complain that this will cause extra financial strain.
“I am definitely not looking forward to paying more for electricity, but it is something we’ll have to live with because we can’t change the minds of these ‘big bosses’. Their investment interests are more important than the people’s interest,” says Anthony Hartze, an upset Discovery resident.
Nersa expects municipalities to report to them about their expenditures every six months. If they end up spending the money on something other than bulk electricity and paying their staff, they will have to pay it back.
