Uproar over power tariff
that while the municipality is allowed to set tariffs, this should be done through consultations.
“No one has been consulted. The energy regulator instructed them to rather decrease the energy losses instead of increasing the price of electricity … they are way out of line … they are placing a basic service in a price range that makes it impossible for the poor to survive,” one Facebook post read.
Mahloko reassured residents that indigent customers will be exempted from the basic charge.
“The basic charge for indigents will be raised in their accounts and at the same time they will receive a credit against the debit, thus making it a zero effect. They will also still receive their free 50kWh per month.”
Residents who are in arrears with their municipal accounts could see themselves receiving even less electricity for their money once the municipality implements its debt control policy.
According to the original proposal, the municipality will retain 50% of money for all non-indigent customers and 30% for indigent customers every time they purchase prepaid electricity. This amount will be credited against the debtor’s municipal account in lieu of their outstanding accounts.
There have been suggestions, however, that the percentage be implemented in incremental stages, starting at 30% for non-indigents and 20% for indigents.
Concerns have meanwhile also been raised about a R370 interim monthly fee charged to householders waiting for prepaid meters.
“We have been waiting for months for the municipality to install our prepaid meters – it appears that they have a shortage while, at the same time, many of those they have installed are apparently faulty. When they install the new meters, however, the municipality presents you with a bill of R370 a month for each month that the prepaid meter hasn’t been working. Many people are not aware of this and haven’t budgeted for it,” one resident said.
According to the municipality, it is currently in the process of replacing conventional meters with prepaid meters. “We are focusing on those customers who are in arrears for all services and those who have defaulted on their arrangements,” municipal spokesperson Sello Matsie said.
“Replacement meters are not paid for by the customer, they are installed at full cost to the municipality. Indigents’ meters are also funded as part of free basic service.”
Matsie explained that some of these meters, as well as those supplied to developers, have been reported as faulty by customers.
“A temporary measure was put in place to ensure that customers were not inconvenienced. Some of these meters could not be fixed immediately and as a result these customers were given access to electricity without buying. In these cases, a R370 a month interim charge was implemented. Once the meter has been replaced, we analyse the purchase patterns and estimate consumption for interim billing and then adjust this fee accordingly.”
According to the latest available figures, electricity losses are around R103 million a year.
Mahloko has also in the past warned councillors that revenue from the sale of electricity was also below that projected and drastic action was needed to improve on billings and recovery from electricity revenue.
Instituting a basic fee is seen by some as a way of ensuring a constant revenue income for electricity.