Why am I paying this much?

IT is that time of year again…

The municipality has started a new financial year and residents have to pull their belts a little tighter as they deal with the annual increases on their municipal bills.

This time, however, many Vryheiders regarded their bills with brows furrowed in confusion and jaws dropped in shock. Some took to social media to voice their discontent. Even residents with prepaid electricity meters are baffled about why they got a certain amount of units when they bought electricity last week, and got fewer units when spending the same amount of money this week.

We know you have questions.

We found the answers in a candid round table discussion with AbaQulusi mayor, Jerry Sibiya, and his finance team.

If you have an electrical connection to your home, your electricity usage is being measured and billed with either a conventional meter (this means that your meter is read once a month and you receive a bill indicating how much you owe) or a prepaid meter (in which case you buy electricity units and load it onto your meter as and when you need it). Otherwise, you have an illegal connection in which case, be warned, the fine for tampering has been increased to R30 000 for residential, and R200 000 for business.

Conventional meters

If you have a conventional meter, the first thing you should be aware of is that the basic availability charge for electricity has gone up from R69.42 to R100. Our friends in the Finance Department assure us that the new price is still relatively low in comparison to what other municipalities are charging.

If you haven’t figured it out by now, you should also note that you are not being charged a set tariff for electricity consumption, but a step tariff. Effectively, what this means is that the more electricity you use, the higher the tariff you will pay. This is meant to encourage you to use electricity conservatively.

The tariff for conventional meters was increased by 1.88% in the new financial year and is set out as follows:

For the first 50kwh you use you are being charged R1 per kwh,

For the next 51 – 350kwh you are being charged R1.39 per kwh

For 351 – 600kwh you are charged R1.86 per kwh

For electricity usage more than 600kwh you will pay R2.15 per kwh.

For the first time, this year AbaQulusi’s residents are now paying an even higher tariff during ‘High/Peak Season’. High season is usually the months of June, July, and August. In order to deter high electricity consumption during winter, Eskom charges a higher rate during the winter months. Usually, the municipality pays Eskom about R15million for Vryheid’s electricity consumption. However, in the winter months, the municipality pays Eskom about R21million.

In the past, the municipality bore the brunt of this increased cost. This year, however, the municipality is passing the increase onto residents for the first time. The Finance Department tells us that this is necessary in order to ensure that the municipality in generating enough revenue to provide services.

What does this mean for you?

In the winter months (three months in the year), you will not be paying the normal tariffs. Instead you will be charged for your electricity usage as follows:

For the first 50kwh you use you are being charged R1.06 per kwh,

For the next 51 – 350kwh you are being charged R1.48 per kwh

For 351 – 600kwh you are charged R1.97 per kwh

For electricity usage more than 600kwh you will pay R2.28 per kwh.

After winter, your tariff will go back to what is usually charged and you should see a reduction in your electricity bill.

Prepaid meters

Some residents prefer using prepaid meters as it allows them to be in control of monitoring their own usage. However, residents using prepaid meters pay a higher tariff than those with conventional meters. This is because your basic electricity availability charge has to be worked into the tariff structure.

Like conventional meter users, prepaid users are also charged according to a step tariff, which is set out as follows:

For the first 50kwh you use you are being charged R1.14 per kwh,

For the next 51 – 350kwh you are being charged R1.58 per kwh

For 351 – 600kwh you are charged R2.12 per kwh

For electricity usage more than 600kwh you will pay R2.47 per kwh.

The step tariff system is the reason consumers see a discrepancy in how many units they get when they purchase electricity for the same amount of money at different times of the month.

For example, is you spend R50 at the beginning of the month, you will get 44kwh of electricity. If the units have been used up, and you buy an additional R50 worth of units, you will only get 33kwh. This is because, within the same month, you have now used more than 50kwh and so you are being charged a higher tariff.

HANDY TIP: If you are on prepaid and you still have electricity units left toward the end of the month, wait until the 1st of the new month to buy more units, then you will go back to being charged R1.14 per kwh as your meter would have reset in the new month.

Prepaid users are also now paying a higher tariff during the winter months, which is set out as follows:

For the first 50kwh you use you are being charged R1.25 per kwh,

For the next 51 – 350kwh you are being charged R1.76 per kwh

For 351 – 600kwh you are charged R2.34 per kwh

For electricity usage more than 600kwh you will pay R2.71 per kwh.

How else has your municipal bill increased?

All other services that are billed on your municipal account have gone up by about 6%.

Also remember that, while you have only been billed for a basic water availability charge for about a year, you are now also being billed for water consumption.

Still feel upset or don’t understand why you are paying so much?

Take your bill to the municipality’s Finance Department and the staff will investigate, or contact the municipality on 034 982 2133 and ask to be put through to the Finance Income Department.