Jo'burg seeks 22% electricity tariff hike

The City of Johannesburg has applied for an average electricity tariff hike of 22%—above the 20.38% guidelines set by the regulator for the coming financial year, Business Day reported on Friday.

According to the newspaper, the city applied for the tariff increase to the National Energy Regulator of South Africa (Nersa) on Thursday.

City Power acting chief financial officer David Matsheketshe told the hearing the utility needed the additional increase because of its infrastructure upgrades and the high primary energy costs of the Kelvin power station.

City Power has invested more than R6-billion in the reinforcement, expansion and rehabilitation of the network infrastructure. It will spend R26.77-billion on capital programmes between 2010 and 2028.

City Power manager Malope Ramagaga said after a Nersa public hearing on tariff hikes applications that most Johannesburg home owners would end up paying 18% more for their power in the 2011/12 municipal financial year, with only high-end residential users paying the full 22% increase.—Sapa