City Power announced on Thursday that it would increase its tariffs by an average of 7% from 1 July after the National Electricity Regulator of South Africa (Nersa) approved hikes.
Nersa approved City Power’s tariff increase application across different consumer segments.
“City Power welcomes the decision by the regulator to approve all the tariff increase applications submitted by the utility,” MD Sicelo Xulu said in a statement.
“These tariff increases strike the balance between raising the required capital to improve infrastructure to ensure a steady and uninterrupted supply of electricity, and the economic realities faced by hard-pressed consumers.”
Xulu said City Power applied its mind to the submissions before it made the application and took a number of variables into consideration.
City Power applied for variable tariff increases across different segments.
A 9,3% tariff increase for time of use for medium-voltage was granted and a 0,17% increase for time-of-use tariff increase for low-voltage customers was approved.
Medium-voltage large power users will see a 7,41% increase, while low voltage large power users will see a 7,37% increase in the price of electricity, City Power said.
Conventional commercial users will pay 4,79% more for their energy usage, while commercial prepaid customers will pay 9,4% more.
Residents who are billed using conventional means will pay 7,36% more, while prepaid customers will pay an additional 7,45%.
“The lower increase also significantly reduces the pressure on revenue collection — the more affordable the price of electricity is kept for our broad customer base, the less severe this challenge becomes for City Power,” Xulu said.
City Power distributes electricity to Johannesburg. — Sapa