Electricity price hike shocks pensioner

A PENSIONER from Tamboerskloof in Cape Town said she was in shock after she recently received an email about her electricity tariff.

The City of Cape Town has made the proposed rise in electricity costs known, but it is still open for public comment until May 4.

The increases are expected to come into effect on July 1.

The email, which the Cape Argus has seen, is titled “Changes to your electricity tariff structure and costs” and was sent on April 18.

It read as follows: “As a City electricity customer who has a prepaid meter and whose residence has a municipal property value of R1 million or greater; or who has a credit meter regardless of property value. You have been identified as such a customer.

“The service charge of the home user tariff is proposed R219 amount for 2017/18 combined with an energy fee of approximately 185.32c/kWh for the first 600 units per month. You have been identified as an eligible customer that will move to the proposed home user tariff on July 1.

“To ensure households pay their share of these fixed costs irrespective of how much electricity they consume, the City aims to recover these costs through a fixed monthly service charge rather than as a component of c/kWh charge.”

The pensioner said her electricity was usually between R450 and R500 a month.

“Now it will increase to R650. My flat is valued at R1million but I am a pensioner. I also have other costs such as rates, which are R1 064 and my levies, R1 450.

“When this comes into effect I will not be able to cope. It is absolutely shocking.”

Cape Chamber of Commerce president Janine Myburgh said they were aware of the fixed tariff of R150 on electricity for properties worth R1m or more.

“The City was running into trouble, and rates and tariffs were now so high that many people, especially the retired, would have to downsize or move to other centres.

“We already know that many businesses are finding it cheaper to generate their own electricity with solar panels than buy it from the municipality,” she said.

Cosatu provincial secretary Tony Ehrenreich said: “We are opposed to increases in electricity. It is a rip-off. How are people supposed to make ends meet? We will be having a march to the City of Cape Town on May 1 about the electricity and water increases.”

Xanthea Limberg, mayoral committee member for informal settlements, water and waste services, and energy, said: “This is not strictly true. The City has included the introduction of a new tariff in the 2018/19 tabled (draft) budget, known as the home user tariff. It is proposed that this tariff will be applied to residents with properties valued at R1 million and above.”

She said the home user tariff differed from the lifeline and domestic tariffs in that customers on the home user tariff would pay a lower price for the electricity units they buy than domestic-tariff customers, but would also pay a fixed charge every month.

I HAVE OTHER COSTS, SUCH AS RATES AND LEVIES, AND WILL NOT BE ABLE TO COPE