Power tariffs shock

Residents to pay up as council approves 7.47% increase

Ndlambe Municipality approved the municipal electricity tariffs listing increase for the 2022/2023 financial year in a special open council meeting on Thursday, June 30.

The 7.47% electricity tariff increase is in line with the National Energy Regulator of SA (Nersa) guidelines.

Municipalities wanting to set their tariff above that guideline increase had to attend a public hearing.

The approved 7.47% increase for municipal customers, implemented on July 1, is separate to the 9.6% annual increase for Eskom direct customers that was implemented on April 1.

The regulator’s increased municipal electricity tariffs would add to the increasing financial pressures faced by South Africans, said Port Alfred Ratepayers & Residents Association’s (Parra) Lindsay Luppnow.

“An increase like this also comes at a time when our residents and ratepayers are facing an excessive loadshedding schedule and related sewerage and connectivity issues,” she said, adding that the implemented 7.47% increase was above what the municipality had budgeted for, which was a 6% increase.

The electricity price hike comes as the country reels from the knock-on effects of stage 6 load-shedding on businesses and households.

Stats SA reported that consumer inflation jumped to a five-year high in May, with annual consumer price inflation rising to 6.5% in May from 5.9% in April and March.

This was the biggest rise since January 2017, when the rate was 6.6% (bit.ly/ConsumerInflationStatsSA).

The electricity rates charged by Ndlambe Municipality vary according to the type of account a resident has and the amount they use.

There are also different rates for peak and off-peak periods.

From July 1, residents who get billed monthly (domestic credit) will pay a basic charge of R346.61.

The rate per kilowatt hour ranges from R1.56 if 50kWh or less is used, to R3.30 if more than 600kWh is used.

The rates for prepaid customers are the same.

A household that consumes 30kWh a day could thus pay close to R50 a day to keep the lights on.

Commercial customers pay a basic charge of R621.54 and a fixed per kWh charge of R2.76. All the above rates include VAT.

It comes at a time when residents and ratepayers are facing excessive loadshedding and related sewerage and connectivity issues