Prepaid meter rates shock

Property owners with prepaid meters hit with additional charges

Ndlambe residents with prepaid electricity meters were shocked to receive their monthly rates bill with an increased basic electricity charge of just over R300 added to their statements (about R500 for businesses). They’ve questioned the legality of the added charges with no notification given by the municipality, nor guidance on alternatives to what many consider an unfair burden. But the municipality says this basic electricity charge, which applies to prepaid and conventional meters, is not new.

Latest municipal accounts bill commercial properties R540.47 for each prepaid electricity meter and residential properties R301.40 per meter (both rates exclude VAT).

“How could they supply electricity meters which are supposed to save money and also save them administration costs and then make up a basic cost on a whim after so many years?” said a property owner.

“I cannot believe that they can do this without any consultation.

“When I signed the agreement for my prepaid meters, there was no stipulation in the contract that there would be extra charges put in like they have done now without consultation,” the property owner said.

“The municipality has given no thought to the ratepayers who cannot afford these charges.

“When was this decision made and why weren’t property owners given the chance to object or given an alternative? There was no mention of this newly added basic costs into the billing system.”

Explaining the rationale for the increase, Port Alfred Ratepayers and Residents Association (PARRA) said, “The Auditor General found that some commercial properties were not being billed correctly for the availability charge. This has been rectified.” However, PARRA said residents could not afford the continual increases.

In an interview with Talk of the Town, Chairperson Dawie van Wyk said, “It’s high. This should come out of those rates and ratepayers should not have to pay for those services individually.”

PARRA elaborated further (see PARRA Post on page 4):

The fixed charges for availability (maintenance of infrastructure) which should in PARRA’s view come out of the Rates paid are Electricity basic R301.40, Water availability R119.31, Refuse removal availability R112.52, the Environmental levy R29.28 and Water borne sewage availability R286.39 making a total of R848.90 which all residents have to pay if they have water borne sewage. These charges increase every year.

However, Ndlambe Municipality says this added basic electricity charge per meter which applies to prepaid and conventional meters is not a new fee.

“This is not a new charge: this has been billed to many ratepayers and is in line with the tariff policy,” said the municipality through spokesperson Cecil Mbolekwa.

“This is not an increase; this tariff has been a municipal tariff and billed to many property owners for many years. The only change is that a new system has been implemented that ensures revenue completeness, therefore ensuring that all consumers are charged for all services in line with the approved tariff policy.”

Mbolekwa said the tariff is approved by NERSA; the tariff policy, which states that a basic electricity fee is charged per meter, is approved by Council.

In the 2022/23 financial year, Nersa granted municipalities an increase of 7.47%, which came into effect last month.