Consumers are struggling but City won’t budge on its electricity tariff

THE CITY will not lower its electricity tariffs despite meeting with civil society which pleaded with it to do so as residents are struggling to keep their lights on.

This comes after the National Energy Regulator of South Africa (Nersa) stepped in to mediate talks between the City and the public on Tuesday. Nersa said it had received a number of complaints from members of the public about the tariffs.

Following the meeting, Stop CoCT spokesperson Sandra Dickson said a precedent had been set by the City of Cape Town and accepted by Nersa, where all municipalities can now proceed to add unregulated amounts to electricity tariffs, with only council approval required.

“Stop CoCT alerts consumers countrywide about this possibility through which municipalities can now add unregulated amounts to the electricity tariffs by seeking only council approval. We will continue this fight,” she said.

Dickson said for months Stop CoCT was asking questions around the discrepancy between the City’s implemented tariffs across all blocks, versus what Nersa publishes as approved tariffs on its website.

“The City director explained the

“Municipalities can now add unregulated amounts to tariffs Sandra Dickson

Stop CoCT Spokesperson

difference of R0.23 per unit in this block, where the City tariff is higher than the Nersa-approved tariff as an ‘unregulated’ portion of the tariff. In Nersa’s view this addition to its approved tariff is outside its scope of regulation. The City told Stop CoCT that no authority other than the City council was needed to approve this unregulated addition to Nersa’s approved tariffs,” said Dickson.

City mayco member for energy and climate change Phindile Maxiti said: “The City reiterated its position that all components of the City’s electricity tariffs were approved by the relevant authorities, namely Nersa and the City council in accordance with all applicable laws.

“The City maintained that as the fixed-electricity charge, in particular, had been approved by Nersa, the complaints about the charge did not constitute a dispute and could thus not be mediated in terms of the regulator’s mandate.”

Maxiti said the City’s fixed charge was not a surcharge, but for recovering the cost of providing electricity.

“As discussed at the engagement, the City’s fixed-electricity charge was not introduced to generate extra income. The charge is used to recover the costs,” Maxiti said.