THE City of uMhlathuze has revised the average 2.2% electricity tariff increase in its draft budget as reported last week to below 1.88%, as capped by the National Energy Regulator earlier this year, the municipality announced on Wednesday.
In its application to Nersa, the borough requested rates per unit of 85 cents for less than 50 kilwatt hours (up from 84 cents), R1.10 for between 50 and 350kWh usage (up from R1), R1.53 for between 350 and 600kWh (up from R1.50), R1.60 for between 600 and 1500kWh (up from R1.57) and R1.82kWh for anything above 1 500kWh (up from R1.78).
Respectively, the rates per 1 000 units translates to R42.73 in block one (from R41.97), R327.31 in block two (from R321.47), R382.61 in block three (from R375.67) and R639.19 in block four (from R627.56).
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The increase from a total of R1 366.67 to R1 391.84 equates to 1.84%.
‘With these step tariffs, the more you use, the more you pay,’ said city Communications Manager Mdu Ncalane.
‘The above is not a new methodology. The sliding scale has been implemented in this municipality for many years.
‘We are currently awaiting for Nersa to approve the application.’
The Organisation Undoing Tax Abuse (OUTA) has taken a stand against the 24 municipalities that have so far attempted to hike Nersa’s tariff cap, which include Pietermaritzburg and the Msunduzi Municipality, which wants to raise tariffs by 3.08%.
OUTA Energy Portfolio Director, Ted Blom, said municipalities’ requests for higher than standard electricity price increases should be refused.
‘OUTA has repeatedly called for municipal tariffs to be recalculated off a zero base so that exemptions and surcharges can be properly motivated.’
Nersa’s cap comes into effect at the start of municipalities’ new financial year on 1 July.
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This takes into account the Nersa-approved 2.2% increase in Eskom’s charges to the municipalities from 1 April.
Residents in the City of uMhlathuze can breathe a sigh of relief.
Applications with steep increases have been submitted by Mpumalanga’s Thaba Chweu Municipality (12%), Mpumalanga’s Msukaligwa and Free State’s Phumelela municipalities (10%) and Northern Cape’s Magareng Municipality (9%).
Cape Town requested a 3.34% hike and Johannesburg’s City Power 2.28%.
‘OUTA is assessing the existing municipal tariff framework, Nersa’s process and timetable for setting these, as OUTA believes the framework is outdated, cumbersome, contradictory and doesn’t allow sufficient time for public participation,’ the organisation said.
