The National Energy Regulator of South Africa (Nersa) is investigating the City of Cape Town’s electricity tariff increase and its tariff structure. The increases were brought into effect in July 1.
“Nersa received numerous complaints regarding the City of Cape Town’s electricity tariffs and is looking into the matter,” said Nersa spokesperson Charles Hlebela to IOL.
Stop Coct, a civic organisation has celebrated the decision. The organisation called for a public hearing by Nesra into electricity tariff increases. Many property owners have experienced an increase of 30% rather than the set standard of 8.8%.
The City’s tariff increases and surcharge has been met with a high level of frustration due to the lack of information symmetry between the City of Cape Town and the public.
Speaking to IOL, Stop Coct spokesperson Sandra Dickson said that for the last four years the City had been implementing tariff increases higher than Nersa’s recommendations.
For 2019/2020 Nersa approved an average increase of 13.07% for municipalities and the City of Cape Town had applied for a 11.30 % increase.
The City also announced that in its budget, electricity tariff increase would remain at 8.8% for the current financial year. Dickson said to IOL that technically the increase was a lie because some residents were paying more for their electricity purchases and consumption.
Various residents have also paid a surcharge of R163.50 if their properties were valued at more than R1 million as well as a flat rate of 10%.