Electricity tariff increase plan announced

26 June 2014 - 13:56 By Sapa
Powerlines. File photo.
Powerlines. File photo.
Image: Mark Wessels

City Power announced on Thursday that it would increase its tariffs by an average of seven percent from July 1, after the National Electricity Regulator of SA (Nersa) approved hikes.

Nersa approved City Power's tariff increase application across different consumer segments.

"City Power welcomes the decision by the regulator to approve all the tariff increase applications submitted by the utility," managing director Sicelo Xulu said in a statement.

"These tariff increases strike the balance between raising the required capital to improve infrastructure to ensure a steady and uninterrupted supply of electricity, and the economic realities faced by hard-pressed consumers."

Xulu said City Power applied its mind to the submissions before it made the application and took a number of variables into consideration.

City Power applied for variable tariff increases across different segments.

A 9.3% tariff increase for time of use for medium voltage was granted and a 0.17% increase for time of use tariff increase for low voltage customers was approved.

Medium voltage large power users (LPU) will see a 7.41% increase, while low voltage LPUs will see a 7.37% increase in the price of electricity, City Power said.

Conventional commercial users will pay 4.79 percent more for their energy usage, while commercial pre-paid customers will pay 9.40% more for their energy use.

Residents who are billed using conventional means will pay 7.36% more for electricity usage, while prepaid customers will pay 7.45% extra for their electricity consumption.

"The lower increase also significantly reduces the pressure on revenue collection -- the more affordable the price of electricity is kept for our broad customer base, the less severe this challenge becomes for City Power," Xulu said.

City Power distributes electricity to Johannesburg.