Many Capetonians are wondering about the extra R150 on their electricity bill this month. The City of Cape Town has implemented an electricity delivery charge because residents are saving electricity, meaning it has too little funds to cover the cost of maintaining infrastructure.
This change affects residents who live in a home that is worth more than R1-million, or make use of a credit metre, regardless of the property value. Residents who fall into that category will be expected to pay a fixed R150 per month, regardless of how much electricity they use per month.
This amount is lower than the amount of R251,85 which was proposed in 2017/2018.
This electricity delivery tariff was implemented as of the 1st of July. This also means that residents will now pay a rate of approximately R1.85c/kWh for the first 600 units per month, and R2.10c/kWh thereafter.
“We use 30% of the money that comes from electricity sales, to help repair and maintain our electricity grid which enables us to deliver electricity to all properties. Whether you use more or less, it costs the same to connect you to the network,” the City said. “However, under the current tariff formula, only those residents buying more than 600 units per month are able to help with these costs. Those that buy less, receive a subsidised amount for their electricity.”
“We do not think that this is fair or sustainable, especially if these customers live in high value properties and are not financially vulnerable,” it added.
Click here for the City’s document that explains the electricity delivery charge in more detail.
Picture: Pixabay
