Publications
Partners
- The City of Cape Town has outlined what it intends to do with the money generated through the electricity tariffs.
- Last week, the City tabled its budget for the 2023/24 financial year, and ratepayers could fork over more for electricity tariffs.
- Western Cape Premier Alan Winde said Nersa's approved 18.6% tariff increase was unjust.
The City of Cape Town says the money generated through increases in electricity tariffs will be used for fuel, repairs, maintenance and bulk supply purchases.
This is according to Kadri Nassiep, the executive director of energy at the City, who broke down the 17,6% electricity tariff hike during Western Cape Premier Alan Winde's energy digicon on Thursday.
"Energy security of supply is the number-one focus within the Cape Town municipality at this point," Nassiep said.
He explained how the municipality's electricity tariffs are structured.
"Even if by some miracle the power system stabilises, there is still a huge issue around the pricing of electricity, and this hits the poorest of the poor the hardest. This has been one of the primary considerations within the City: how to develop and maintain sustainable pricing ... to ensure that even those who use the least are afforded a proper and reliable service," he said.
Most of the 17,6% tariff increase, which is lower than the 18.6% approved by the National Energy Regulator of South Africa (Nersa), will be spent on the following:
- 0.7% for fuel;
- 0.9% for repairs and maintenance;
- 10.9% for bulk purchases; and
- 1.1% for capital charges.
On some of the benefits being passed to residents, particularly indigent households, Nassiep said: "We have been able to increase the allocation of the energy charge applicable to the poor."
Last week, the City tabled its budget for the 2023/24 financial year.
READ | Joburg ratepayers could cough up three times inflation rate with proposed property tariff hikes
The R69.9 billion draft budget will now be open for public participation until May.
The budget outlines several focus areas, including mitigating load shedding.
Winde said it was unfair that Nersa approved the 18,6% increase last month.
"The reason why it is such a steep increase is because of the corruption and maladministration at Eskom," he said.
