BUSINESS NEWS
Cape Town faces electricity price hikes
Posted Thu, 29 Jun 2006
Electricity tariffs in the City of Cape Town will increase by an average of 4.6 percent on July 1, a city spokesperson said on Wednesday. Spokesperson Charles Cooper said the tariffs had been adjusted to cater for complaints about the daily service charge. "This means that some customers will see an increase as low as 0.8 percent while others will see a once-off increase that is higher than the average adjustment."
Domestic consumption above 600kW.h per month would see service charge tariffs increase from R1.46 per day to R2.27 a day, including VAT. The energy charge would increase from 33.28 c/kW.h to 34.77 c/kWh. Domestic consumption below 600kW.h/month would see energy charges increased from 45.99 c/kW.h to 46.34 c/kWh. As of July 1 customers using between 450 and 600 kWh per month will no longer pay the daily service charge. "Numerous complaints were received from customers who felt that the daily service charge, applicable to the High
Consumption tariff, was inconvenient, particularly if they wanted to "top up" their prepaid electricity a few days before making their usual large purchase," Cooper said in a statement.
In response to these complaints council resolved to revert to a domestic tariff structure similar to the structure in operation prior to July 2005. This means that, with effect from July 1, all customers using between 450 and 600 kWh per month on average, measured over the 12 months prior to June 2006, will automatically be converted from the current Domestic High tariff to the new Domestic Low tariff, which does not have a daily service charge, but a higher energy charge than the Domestic High tariff. These customers will not receive the free basic supply of electricity.
Sapa
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