City Power to charge more

City Power says its approved average tariff increase of 12.72% does not mean that every customer will have the same increase.

- Zanele Mbengo

The power utility said it had started implementing some of the findings of the cost of supply study and as a result, some customers will experience a slightly lower tariff increase while an increase to others may be above the 12.72% threshold.

This follows approval by the National Energy Regulator of South Africa (Nersa) of the new tariff increase requested by City Power.

Energy analyst Lungile Mashele said municipal tariffs were driven by operational costs such as salaries, the delivery of services through technicians, refurbishment and equipment, vehicles and other services that were not billed.

Mashele said the largest cost driver was the cost of the electricity which City Power buys from Eskom.

"These costs have increased substantially in the past two years, resulting in this above-inflation increase, even for indigent customers. The protection of indigent customers is of paramount importance," she said.