SHOCKING: Rates hike sparks outrage

NEWCASTLE – High season tariffs have hit residents where it hurts – their pockets.

Related article: Are we being ripped off on electricity charges?

Last week, those registered on the municipal SMS database received notification of their latest dues, the increased amounts immediately sparking outrage. A short while later, a new message was distributed to consumers.

“Following the review of your electricity bill and taking into account the drought relief surcharge, Newcastle Municipality has decided to waive the application of the high season tariff for electricity. A new SMS will be released based on the revised amounts,” the message read.

By Monday this week, the revised amounts were communicated to some residents. However, some consumers reported an initial increase of about R1 000, and a revised amount only a small amount less.

Others claimed the revised amount was no different to the initial amount owed. This led to a furious debate on social media, and numerous posts on local forums, outlawing Mayor, Afzul Rehman and his administration.

“This is crazy; there has to be something we can do to protest this,” commented one resident. “We used to pay R1 800 per month for six people living in a four bedroom house. Now it has gone up to R3 600! And we use a gas stove and gas heater.”

More clarity on the matter was provided at Tuesday’s Executive Committee (Exco) meeting. Cllr Rehman said the fallout over huge spikes in rates, following SMSes last week, led him to urgently meet with the Finance team, to discuss and seek a way forward.

Also see: NERSA has rejected Eskom’s tariff hike application

“We found NERSA (National Energy Regulator of South Africa) had approved not only a normal tariff, but also a high season rate, effective from June 1 until the end of August.”

This came during the most difficult time of the year for consumers – winter. Cllr Rehman said it was almost inevitable for rates to increase, considering even boiling water in a kettle took more power to accomplish. Thus, the discussion was about what would happen if the high season rate was not approved.

“We took a decision to review and reduce the high season rate to a flat rate, to avoid three months of hard times for residents.”

Cllr Rehman said the revised bills were dispatched on Monday, and many reported a decrease. However, far more residents had come forward to query the amount due, a factor he attributed to the power demands associated with winter.

“I ask Exco to confirm the scrapping of the high season tariff, to make an urgent application to NERSA for a review of the tariff, and that this be forecast on the adjustment budget.”

This was agreed upon by Exco. Yet the debate still rages – some have called the situation an attempt to curry favour ahead of the Local Government Elections, or a final attempt to placate consumers.

“They spiked it just to drop it a tiny bit, to make it look like they are doing us a favour. But it’s actually still a rip-off.”