Electricity tariffs to be the great leveller

31 October 2014 - 08:42 By OLEBOGENG MOLATLHWA
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A view of the setting sun through the pylons of the Koeberg nuclear power station near Cape Town.
A view of the setting sun through the pylons of the Koeberg nuclear power station near Cape Town.
Image: ESA ALEXANDER

Electricity pricing is set for a major shake-up.

Eskom and the SA Local Government Association yesterday signed an agreement to standardise the cost and quality of electricity across all 273 municipalities , irrespective of whether power is supplied by Eskom or a municipality.

At the moment, some electricity consumers pay different tariffs, even in the same jurisdiction, simply because power is provided by two different service providers.

The plan was made public yesterday on the second and final day of the local government association's national executive committee lekgotla in Pretoria.

Xolile George, the association's CEO, said: "In the long run, common tariff platforms must exist. There must be uniformity in terms of tariffs".

The agreement will also eliminate obstructions to free basic electricity.

Municipalities are legally obliged to provide free basic electricity to indigent households, while Eskom does not have this responsibility.

But it may be a while before the new agreement is implemented.

George said that before then the association and Eskom would establish "working groups" to agree on a uniform tariff.

The National Energy Regulator of SA would then be approached for final approval of the set tariff.

George could not say when all of this would happen but a final decision could be reached before the 2016 local government elections.

The association made it clear that the plan would be "prioritised as a matter of urgency ... in view of the upcoming 2016 local government elections".

The lekgotla also heard that municipalities in the country were owed R92-billion - about 67% of it by households.

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