City Power announces tariff hike

City Power announced on Thursday that it would increase its tariffs by an average of 7% from July 1, after the National Electricity Regulator of South Africa (Nersa) approved hikes.

Nersa approved City Power’s tariff increase application across different consumer segments. “City Power welcomes the decision by the regulator to approve all the tariff increase applications submitted by the utility,” managing director Sicelo Xulu said in a statement. 

“These tariff increases strike the balance between raising the required capital to improve infrastructure to ensure a steady and uninterrupted supply of electricity, and the economic realities faced by hard-pressed consumers.” 

Xulu said City Power applied its mind to the submissions before it made the application and took a number of variables into consideration. 

City Power applied for variable tariff increases across different segments. A 9.3% tariff increase for time of use for medium voltage was granted and a 0.17% increase for time of use tariff increase for low voltage customers was approved. 


Medium voltage large power users  will see a 7.41% increase, while low voltage LPUs will see a 7.37% increase in the price of electricity, City Power said. Conventional commercial users will pay 4.79% more for their energy usage, while commercial pre-paid customers will pay 9.40% more for their energy use. 

Residents who are billed using conventional means will pay 7.36% more for electricity usage, while prepaid customers will pay 7.45% extra for their electricity consumption. “The lower increase also significantly reduces the pressure on revenue collection – the more affordable the price of electricity is kept for our broad customer base, the less severe this challenge becomes for City Power,” Xulu said. City Power distributes electricity to Johannesburg. – Sapa

Subscribe to the M&G for R2 a month

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

And for this weekend only, you can become a subscriber by paying just R2 a month for your first three months.

Sapa
Guest Author

Related stories

Allegations of corruption at City Power

“These companies are given most of the subcontracting and the person responsible is Percy Mphahlele”

South African women live with the burden of ‘constant vigilance’

Fear of being attacked restricts the movement of most women in everyday life

Cosatu has a plan to save Eskom

The union federation says urgent, bold action is needed to keep the state-owned utility (and South Africa) going

Load-shedding dooms SA profits

From corner bakeries to mines, businesses bear the brunt of the power-cut pain, with alternative energy generation solutions mired in bureaucracy

Nersa increase places 90 000 mining jobs at risk

Initially, when Eskom made its tariff application, it was estimated it would cause 150 000 job losses while hastening the demise of the gold sector

Get out of the way, Eskom

There’s only one option for South Africa and that is to scrap the flailing power utility
Advertising

Subscribers only

ANC: ‘We’re operating under conditions of anarchy’

In its latest policy documents, the ANC is self-critical and wants ‘consequence management’, yet it’s letting its members off the hook again

Q&A Sessions: ‘I think I was born way before my...

The chief executive of the Estate Agency Affairs Board and the deputy chair of the SABC board, shares her take on retrenchments at the public broadcaster and reveals why she hates horror movies

More top stories

Between dark and light was Maradona

The life of Diego Armando Maradona, who died this week, will always remind us that the smell of shit is as important as the perfume of flowers, writes Niren Tolsi

Public protector’s ‘mistakes’ were made to nail the president, court...

Busisiwe Mkhwebane discarded facts that were inconvenient to her when she investigated the CR17 campaign, Cyril Ramaphosa’s lawyers argued

Student funding scheme gets new chief executive and board

The National Student Financial Aid Scheme has been under administration for two years after its board was dissolved and its boss resigned not even halfway through his term

General Council of the Bar slams Zuma Foundation

Another summons has been served on Jacob Zuma at his Nkandla residence, requiring the former president to appear before the Zondo Commission next year
Advertising

press releases

Loading latest Press Releases…