Double the price of Mother City’s power

Electricity costs around R1,34 per kilowatt in KwaDukuza compared to 92 cents in Cape Town – the marked difference is because the KwaDukuza municipality needs money to upgrade its ageing electricity infrastructure.
KwaDukuza municipality applied to have their tariff structure amended earlier this year, setting an increase averaging 11,5% in the coming year – 64% more than recommended by Nersa (Electricity price shock, Courier, June 19).
North Coast resident Tanya Tiefenthaler recently visited Hermanus and bought 214 units of electricity for R200.
When she returned to KwaDukuza she forked out R400 for 299,7 units.
“How can we pay almost 50 percent more for electricity? This is outrageous!”
Nersa initially rejected KwaDukuza’s proposed tariff increases because they were too high but later approved them on condition that KwaDukuza submits a report every six months on how the extra funds are used.
The decision shocked residents and some councillors who said the new tariffs were unaffordable. KwaDukuza communications director Sifiso Zulu said they took several factors into consideration before applying to increase tariffs.
“(We also considered) the amount of free basic electricity provided to the indigent and child headed households, repair and maintenance costs and high energy losses experienced.”
He added that the tariff approved for each municipality is different because of the purchase cost of electricity and cost of supplying it, repairs, maintenance and electricity line losses.
Nersa head of communications Charles Hlebela confirmed KwaDukuza needed to improve its infrastructure.
“KwaDukuza municipality applied for above the guideline tariff increase and their application was approved by the energy regulator. The municipality indicated that they need the funds to improve their electricity infrastructure.”