/ 8 July 2008

Nersa anounces price increase

Poorer residential consumers will pay only 14,2% more for electricity this year, the National Energy Regulator of South Africa (Nersa) said on Tuesday.

However, more well-off customers will pay more than double that figure, the regulator said in a statement.

On June 18, Nersa approved a 13,3% average electricity price increase, in addition to the 14,2% already approved in December last year, resulting in a 27,5% average increase year-on-year.

The increase for municipal customers — excluding poorer residential customers — would be 32,6%.

This figure included the previous Nersa decision of a 12% guideline increase for 2008/09 for municipalities effective from July 1, and a further guideline increase of 20,6% to be implemented before October 1.

”The increase to the poorer residential customers is limited to an increase of 14,2%,” Nersa said.

Those municipalities who implemented a 12% increase from July 1 would therefore only implement a further guideline increase of up to 2,2% for poorer residential customers, and 20,6% for other customers.

The municipal additional increase would be treated as a ”pass through” increase.

Municipalities who had tariff approval from the regulator prior to the end of June for the 2008/09 financial year, and who then applied the calculated municipal guideline of 20,6% to these approved tariffs, would not be required to re-apply to Nersa for a further approval of tariffs.

These municipalities would be required to submit their schedule of revised standard tariffs to the regulator by August 31 2008.

Municipalities who had either not had their electricity tariffs for 2008/09 approved, or who had their tariffs approved but had not applied the increase within the approved guideline, would be required to submit these tariffs for approval by August 31.

Nersa urged municipalities to implement the revised electricity tariff increases before October 1, to minimise financial impact on the municipality and customers. – Sapa