See a municipal capacity charge on your bill? This is what it means
MCLM explains what the electricity capacity charge on municipal statements involves.
Following Nersa’s new electricity tariff structure approval earlier this year, Mogale City Local Municipality (MCLM) introduced a capacity charge on electricity usage.
MCLM communications officer Refilwe Mahlangu explained what exactly this is.
She said the capacity charge is a fixed monthly amount calculated by multiplying the client’s electricity supply capacity in kilovolt ampere (kVA) with the applicable tariff (currently R42.71 excluding VAT per kVA for commercial and industrial customers in the current financial year).
“Electricity supply capacity is the total electricity a consumer can draw on the network at any point without risking a trip or damage to appliances. The capacity is widely measured in either kilowatt (kW) or kVA depending on the application, where the capacity charge tariff is currently levied on medium and large businesses, industrial consumers and large domestic customers,” Mahlangu explained.
She continued the capacity charge is used to cover costs relating to fixed operation, maintenance costs, security of supply and the cost of contracted capacity with Eskom.
“Deemed capacity levels are utilised to bill customers by category, however commercial and industrial clients are welcome to review their electricity supply capacity needs and to consult the municipality’s energy services should they deem reserved capacity as billed does not suit their electricity supply needs. The capacity charge is reflected as a basic charge on the municipal statements, where a capacity declaration form is available at the electrical division for completion if clients require their capacity to be reviewed and adjusted by the municipality,” Mahlangu concluded.
