Community rallies against electricity 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.

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.

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

According to CP spokesperson Isaac Mangena, customers will be placed on a tariff that is exempt from service and capacity costs to protect that specific consumer group from becoming overly vulnerable.

Residents, however, are unhappy about the recent tariff increase, detailing how it will negatively impact the cost of living. The Roodepoort Northsider spoke to residents to get the community’s voice on the recent electricity tariff increase.

Penny Langton expressed her unhappiness with the recent increase.

“I am already paying extra for solar panels because Roodepoort is currently undergoing a vicious cycle of power outages, cable theft, and vandalism of mini-substations. Implementing this does not benefit the people, yet it brings more expenses to our households.”

Ward councillor Jacques Hoon said, “I feel like the increase was an unnecessary burden considering the high increase we had on tariffs as well as property evaluation where residents felt they were being charged too high on their property.

“Based on that, we argued it as the council because we experience so many power outages in the area, and it feels unfair for residents to now have to pay for the shortcomings that we as the municipality have experienced over the years. We were pushed back for arguing against this increase, and from my side, we will keep arguing for our communities to make sure we have a reasonable understanding,” Hoon added.

Clive Rynvelv said the tariff will negatively impact both the working class as well as those who are trying to make a living.

“This is a serious problem because extra financial arrangements will have to be made, which will sink them into debt.”

Malebana Legodi said, “I believe it is too expensive and unfair since currently, everyone is under pressure financially. This adds more problems to those who are unable to make means and pay for their rates and taxes.”

Nicolené Janse van Rensburg said, as a property owner who has prepaid electricity from CP, due to incorrect billings on the City of Johannesburg accounts and/ or estimated readings, we opted to have a prepaid metre installed to avoid incorrect accounts and also for budgeting purposes to monitor and control consumption.

“We are truly unhappy about the new increase because why are owners that are paying for electricity in advance being penalised in such a manner? Surely the municipalities benefit from having owners on prepaid, as they are getting the funds without chasing arrears from debtors not paying their accounts.

“Rather, invest in putting everyone on prepaid to ensure funds come in without additional surcharges. If they start such an initiative in the thousands of residential complexes out there and residential suburbs, they would benefit tremendously from incoming funds as people load and use them,” Nicolené added.

Tumelo Modise said the timing of this tariff is a problem because it comes at the same time as the electricity price increases.

“People are struggling to make ends meet. This demonstrates the insensitivity of the officials to the plight of the citizens of Johannesburg.”