New block tariff for electricity

New block tariff for electricity

The new block tariff for electricity was approved by the Kouga Council on June 23, 2011, as part of the municipality’s medium-term revenue and expenditure budget for the 2011/12 financial year.

PUBLIC CONSULTATION

Public participation is an important aspect of the budget process and the municipality would like to encourage residents to make use of the opportunities available to them to comment and/or object. Preceding approval of the 2011/12 budget, public meetings were held in all wards during April where residents had the opportunity to comment and/or object on the new budget. Written comments were also invited through the media and six submissions were received, including a comment on the new block tariff.

NEW BLOCK TARIFF   

Electricity tariff increases are largely beyond the control of municipalities because they depend on the bulk tariffs charged by Eskom and are approved by the National Electricity Regulator of South Africa (Nersa).

It was Nersa that recommended that a block (stepped) tariff structure be implemented by municipalities from July 1, 2011. According to Nersa, the aim of this tariff structure is two-fold: to encourage energy-saving and to subsidise lower consumption users (mostly the poor).

The new payment structure means that the tariff for the first 50kWh electricity is actually lower than the tariff that was charged 2010/11 while the tariff for 51kWh to 350kWh remains roughly the same as it was the previous year. The tariff only increases in comparison to the previous year when consumers use more than 350kWh. 

The 2011/12 block tariffs for domestic consumers are:

Queries can be directed to the municipality’s Income Section at 042 200 2134 or 042 200 2263.