City Power explains proposed tariff hikes

The City of Johannesburg planned a similar rate increase to the contested Tshwane hike but has provisionally suspended it. Courtesy of #DSTV403

TSHWANE - AfriForum has accused the Tshwane municipality of increasing electricity tariffs, without approval from the energy regulator, Nersa.

The lobby group is contesting the hikes.  

The City of Johannesburg had planned a similar increase but has provisionally suspended it.

Many customers were not aware of the planned increase.

READ: Electricity tariff hike kicks in

Acting General Manager, Frank Hinda explained how the municipalities are able to set the rates without Nersa's express approval.

"Nersa approves the tariffs and the network surcharge is not part of the tariff."

He said, "the instrument that allows for the network surcharge is the Municipal Fiscal Powers and Functions Act and in terms of its provisions it is then approved at the prerogative of the council."

Hinda said the council would allow for further consultation from the customers before reinstituting the hike but in order for prepaid services to be available on demand, the price would have to go up.

Source
eNCA