City Power after an extensive public consolation process under the leadership of the City of Johannesburg, applied to NERSA for an average tariff increase of 7.47% with effect from this month July 2022.
At the time of the public consultation process, it was expected that the Electricity tariffs will on average increase by 9.61%.
In consideration of the current economic conditions where most of our residents are affected, and given the NERSA guideline increase for municipal entities, City Power revised its proposed increase down to 7.47% which was approved.
City Power has 22 different tariffs for its 4 different customer categories namely residential, business, agricultural and large power users.
All City Power tariff sub-categories are increasing by 7.47% except for the business convention tariff that has been limited to 4.4% to gradually align with the NERSA benchmarks for the particular customer category.
The increase in City Power tariffs is within NERSA guidelines and is essential to cover the increased cost of bulk purchase from Eskom (8.61%), as well as to cover inflationary (4.4%) adjustment to City Power operating cost.
To simplify it, our customer Mrs Baloyi of Pimville uses 350 kWh every month. Before July she used to pay R592.93 VAT exclusive per month for 350kWh of electricity.
The increase which started on 1st July 2022 will therefore mean Mrs Baloyi, still using 350kWh per month, will be charged R734.03 which is R51.02 more than what it was last financial year. And Customers consuming 500kWh will going forward be paying R1 094.89 inclusive of VAT which is R76.10 more than it was last financial year.
City Power in its operations, always strives to ensure that electricity is available and is affordable for our customers who are already buckling under tough economic conditions.
Its for this reason that while Eskom's average tariff increase for 2022 is 9.61%, with an increase of 8.61% levied to municipalities including us at City Power, we managed to get our average tariff increase for 2022 at 7.47%, which is differentiated for the different customer categories.
The new Tariffs are available for the customers on our website www.citypower.co.za.
ENDS
Issued by City Power
Isaac Mangena, Spokesperson
05/07/2022
