Brace yourself for a new electricity tariff increase
City Power has 22 different tariffs for its four different customer categories namely residential, business, agricultural and large power users.
After an extensive public consultation process under the leadership of the City of Johannesburg (CoJ), City Power applied to the National Energy Regulator of South Africa (NERSA) for an average tariff increase of 7,47% with effect from this month, July 2022.
According to the power utility, at the time of the public consultation process it was expected that the electricity tariffs on average would increase by 9,61%.
Considering the current economic conditions affecting most residents, and given the NERSA guideline increase for municipal entities, City Power adjusted its proposed increase downwards to 7,47%, which was approved.
City Power has 22 different tariffs for its four different customer categories namely residential, business, agricultural and large power users.
All City Power tariff sub-categories are increasing by 7,47% except for the business convention tariff that has been limited to 4,4% to align gradually with the NERSA benchmarks for the particular customer category.
“The increase in City Power tariffs is within NERSA guidelines and is essential to cover the increased cost of bulk purchase from Eskom (8,61%), as well as to cover inflationary (4,4%) adjustment to City Power operating cost.
“To simplify it, our customer Mrs Baloyi of Pimville uses 350kWh every month. Before July she used to pay R592,93 per month for 350kWh of electricity.
“The increase which started on July 1, 2022 will therefore mean Mrs Baloyi, still using 350kWh per month, will be charged R734,03 which is R51,02 more than what it was in the last financial year.
“Those consuming 500kWh will be paying R1 094,89 inclusive of VAT which is R76,10 more than it was last financial year.
“City Power in its operations, always strives to ensure that electricity is available and is affordable for our customers who are already buckling under tough economic conditions.
“It’s for this reason that while Eskom’s average tariff increase for 2022 is 9,61%, with an increase of 8,61% levied to municipalities including us at City Power, we managed to get our average tariff increase for 2022 at 7,47%, which is differentiated for the different customer categories,” said City Power spokesperson Isaac Mangena.
The new tariffs are on the website www.citypower.co.za.
