Councils seek rise in power tariff

MUNICIPALITIES across the country want electricity tariff hikes of up to 35% to cover high losses due to illegal connections, salaries and other increasing costs, and for maintaining rural networks and improving their revenue base.

Nine municipalities have asked the National Energy Regulator of SA (Nersa) for tariff increases above the 12.2% the regulator granted earlier this year.

Mookgophong (formerly Naboomspruit) local municipality in Limpopo has applied for a 35% increase which it says is for maintaining its rural network.

Endumeni local municipality in Dundee, KwaZulu-Natal, wants a 16.12% hike owing to the high rate of distribution losses due to illegal connections and theft of electricity.

According to its latest available financial statements, the Endumeni municipality incurred electricity losses of nearly R37-million due to theft and distribution losses.

In Mookgophong, electricity distribution losses were about R8.2million while residents owe nearly R16-million, according to the municipality ’ s 2013/2014 financial statements.

Last week, Mookgophong municipal manager Ombali Sebola blamed inadequate maintenance and an increase in the municipality ’ s Eskom account.

Nearly a third of the Mookgophong municipality ’ s operating expenditure is from the equitable share it receives from the national government.

The municipality threatened prosecution and disconnection for any resident found to have illegally connected electricity.

The Gariep local municipality in the Northern Cape has applied for a 17% increase to align “tariffs to benchmarks ”.

Other municipalities that want their electricity prices hiked by between 12.69% and 15% include Drakenstein (Paarl), Msukaligwa in Ermelo, Midvaal (Gauteng), City of Umhlathuze (Richard ’ s Bay), Cape Agulhas (Bredasdorp) and Abaqulusi (Vryheid).

At Abaqulusi, the municipality wants the 15% increase to replace prepaid meters while the City of Umhlathuze has applied for a 14.92% increase to cover for its electricity costs that it claims are below Eskom ’ s charges.

Nersa will hold public hearings into tariff hike applications in Tshwane today.