Pensioners say no to increased tariffs

City Power (CP) introduced a new tariff increase on July 1, following approval from the National Energy Regulator of South Africa (Nersa).

The average increase of 12.7% is lower than the rate requested by CP and is based on Nersa’s methodology and the findings of the CP cost of supply study.

The tariff increase is driven by various factors, including industry inflation, bulk purchase cost increases, operational costs, and cost structure. To reflect the true cost of supply, a total basic charge of R200 will be introduced, comprising a R70 service charge and a R130 network capacity charge.

• Also read: Brace yourself for tariff increase starting this July

The total basic charge will be recovered from qualifying prepaid customers using the prepayment platform. When purchasing electricity, the R200 charge will be deducted upfront, before any consumption-related charges.

However, the new tariff increase has sparked outrage among pensioners residing at the Klein Helderkruin Retirement Village. According to the chairperson of the retirement village, Gaby Richardson, pensioners claim that the increased electricity costs will severely impact their ability to afford basic needs, given their fixed pension funds.

The Roodepoort Record visited the retirement village to get their views.

Bernine van Rensburg says that she is highly disappointed in how the government still chooses to not consider how pensioners are unable to survive such high rates with the amount they receive from their pension fund.

“I bought electricity worth R150, and I am only left with 29 units for the remainder of the month. I still have other basic needs to get, and it feels unfair to live this way.”

Denzel George said, “I’ve stayed at the village for two years, and everything keeps increasing, which is not convenient for pensioners who don’t receive much. We worked very hard all these years and fought for our rights in this country, only to be unfairly treated. This increase is a rip-off, and as a government-owned facility, pensioners should not be treated this way.”

Ina O’Kelly expressed her shock when the increase was made effective on July 1.

“How do they expect us to keep living this way when they don’t make it any easier? I feel very overwhelmed because we cannot afford to carry on fighting to survive this way. I struggle each month to get all my basic things, including groceries and medication,” she adds.

Judy Moodley said, “I don’t think it is fair for us pensioners who have worked hard and paid their dues, living off just a mere grant, to suffer and be liable for City Power’s failures.”

Colleen Thomas is angered by this new initiative because it does not cater for pensioners.

“I have to go to the hospital regularly every month, and it takes transport to get there, as well as getting my medication and still having food for the rest of the month. We still pay tax for our necessities, and they expect us to still afford these new tariffs when we only get R2 000, which never lasts for the entire month if everything keeps increasing.”