Midvaal Municipality: New tariffs kicked in on 1 July 2022

By Alderman Phil C. Pretorius, Chief Whip, Midvaal Local Municipality

In Midvaal, electricity is supplied directly by Eskom in certain wards and by Midvaal as an intermediary from Eskom in others.

The new financial year started on the 1st of July 2022 which means that the new rates were activated. These rates are set by NERSA and Midvaal can only intervene for our residents with a special request to them for leniency. I already reported on the approved budget a number of weeks ago but would like to highlight the new electricity tariffs. In Midvaal, electricity is supplied directly by Eskom in certain wards and in others by Midvaal as an intermediary from Eskom. You can determine this by checking who you get your electricity bill from. This means that where Midvaal is the intermediary, the infrastructure is maintained by Midvaal. For this reason, a minimal service fee is charged on the electricity. The same applies to the supply of water.

Garbage removal and sanitation rates have been reduced by Midvaal to 6% while water remains at 8.8% as set by Rand Water. These rates are published on Midvaal’s website. After negotiations with NERSA Midvaal announced that they were able to adjust the original increase for electricity to only 6.89% for our residents.

Since1 July 2022, prepaid units’ costs are as follows:
0-50 units: R1,41/unit
51-350 units: R1,77/unit
351-600 units: R2,60/unit
601 and more: R3,02/unit
(For purposes of example, the numbers have been rounded downwards)

These rates are recovered on a sliding scale. The sliding scale works as follows. On the first of each month, the minimum rate of R1.41c is recovered for the first 50 units that are purchased. From units 51 to 350, the second level of the sliding scale is recovered which is R1,77c. From units 351 to 600 they recover R2.60c per unit and from 601 upwards the rate of R3.02 applies.

At the beginning of September, the units start again at 0 at R1,41c per unit. So when you buy 100 units on the first of the month you will pay R1,41 per unit for the first 50 units (R70,55c) and then for units 51-100 the amount of R1,77 per unit (R88,66c) . It will therefore cost you approximately R152,51c for the first 100 units at an average of R1,59/unit, etc.

It therefore makes sense to determine how many units you use more or less per month and then purchase only that number of units for the month. If, for example, you only use 800 units in the month but bought 1000 units, you will pay the highest rate (R3.02) for the last 200 units instead of the lower cost for the first 50 and then 51 to 350 etc. which you would pay at the beginning of the next month. It is therefore not cost effective to buy, for example: R10 000 worth of power at once.

It remains a priority for Midvaal to keep costs as low as possible for our residents and make sure that every cent is plowed back into our community.

Proudly Midvaal Greetings

Ph!l

Web: www.midvaal.gov.za
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