Fin24

Joburg seeks 22% power tariff hike

2011-06-10 08:23

Johannesburg - The City of Johannesburg has applied for an average electricity tariff hike of 22% - above the 20.38% guideline set by the regulator for the coming financial year, the Business Day reported on Friday.

According to the newspaper, the city applied for the tariff increase to the National Energy Regulator of SA (Nersa) on Thursday.

City Power acting chief financial officer David Matsheketshe told the hearing the utility needed the additional increase because of its infrastructure upgrades and the high primary energy costs of the Kelvin power station.

City Power has invested more that R6bn in the reinforcement, expansion and rehabilitation of the network infrastructure. It will spend R26.77bn on capital programmes between 2010 and 2028.

City Power manager Malope Ramagaga said after a Nersa public hearing on tariff hikes applications that most Johannesburg home owners would end up paying 18% more for their power in the 2011-12 municipal financial year, with only high end residential users paying the full 22% increase.


Comments
  • Johnny - 2011-06-10 08:48

    YOU CANT MILK A DRY COW!!!!!!!

  • Daniel - 2011-06-10 08:52

    I guess this was not mentioned in the ANC service delivery campaign to win the city during the municipal elections!

      Matt - 2011-06-15 15:29

      But it doesn't apply to those dumb enough to vote ANC... either they're paying nothing, or they're tapping it anyway

  • Johnny - 2011-06-10 08:52

    YOU CANT MILK A DRY COW!!!!!

  • Daniel - 2011-06-10 08:55

    I guess this was not mentioned in the ANC service delivery campaign to win the city during the municipal elections!

  • Gore - 2011-06-10 09:07

    Since when do companies raise capital money from increasing selling price of your products? Go into the market, loans etc and borrow for that!

  • Rodney Emmerich - 2011-06-10 09:13

    Of course that will be just fine!!!!!Inflation is worked out by some very clever people at between 3 & 6% , how the hell they get to that figure on God knows. Food prices have gone through the roof , everytime we blink fuel is up , toll road fees are about to hit us between the eyes ,so , yes sure smack us with 22% elec hike too . The donkey can only carry so much , it eventually gets to the point when it just cannot anymore and in the case of the SA consumer that day is not far away

  • Rodney Emmerich - 2011-06-10 09:17

    ????

  • De_La_Rey - 2011-06-10 09:18

    This is because trains which use electricity will be transporting people for free on Saturday to some woman's funeral.So we must not complain but just pay and pay and pay until they have drained every cent from the white man's pocket.

  • gcr - 2011-06-10 09:26

    Well City Power can certainly help themselves by disconnecting all illegal connections, prosecuting these people, and stop wasting electricity by keeping lights blazing in streets and highways during daylight hours. Only when they regulate this should they even be considered for increased costs - also why are they currently charging residents 50% more than Eskom tariffs - they are funding their own inefficiencies, unrealistic salaries and inflated tenders

  • Telara - 2011-06-10 09:28

    Poverty, here we all come...

  • BigD - 2011-06-10 09:36

    The power increases are just a way to collect more revenue without spending as you suggest. I am busy installing solar panels and will soon be using your electricity service only now and then when the need arises. Your increases are now criminal.

  • Cynical_BStd - 2011-06-10 09:39

    This would not be neccessary if at least 70% of Soweto residents pay their Electricity bills

  • Shaun - 2011-06-10 09:50

    Maybe they should supply the public demand before increasing their pricing!

  • Kryvirjou@24.com - 2011-06-10 10:51

    they will earn less, due to bad debts

  • GS-rider - 2011-06-10 11:06

    How much more do these bastards want from us, when will it stop, this makes me sick to the bone. Even a yearly increase does not even begin to cover the percentage we have to pay.

  • Pieter - 2011-06-10 11:07

    First sort out energy theft before you increase electricity. We are tired of paying for someone else. A person who steals electricity burns a heater in every room, while we can’t afford to switch one heater on. The more we use the more we pay. In some areas up to 50% of all meters are bypassed while the other 50% pays.

  • Pieter - 2011-06-10 11:16

    First sort out energy theft before you increase electricity. We are tired of paying for someone else. A person who steals electricity burns a heater in every room, while we can’t afford to switch one heater on. The more we use the more we pay. In some areas up to 50% of all meters are bypassed while the other 50% pays.

  • Pieter - 2011-06-10 11:40

    First sort out energy theft before you increase electricity. We are tired of paying for someone else. A person who steals electricity burns a heater in every room, while we can’t afford to switch one heater on. The more we use the more we pay. In some areas up to 50% of all meters are bypassed while the other 50% pays.

  • tofu1 - 2011-06-10 12:07

    WTF? They should be penalised for non delivery ..... This is legal robbery .. thankfully those who voted ANC have brought this upon us ....

  • Echo Bravo - 2011-06-10 12:34

    You cant get blood out of a stone, but you sure as hell can get a new BMW or some extra cash in your back pockets. Johannesburg Metro Council it's time you woke up and stopped ruining this city. Once again the ANC Council has broken it's promises and the sheep that followed will suffer for another 4 years.

  • Sentor - 2011-06-10 14:05

    City Power's mark-up is a reflection of the cost of corruption and incompetence. In the City's first finacial quarter report City Power noted a 40% loss (electricity supplied and not paid for) I understand the situation has not improved and much of that loss is as a result of a dodgy tender relating to large power users, which accounts for some 70% of CP total revenue. Imagine a company surviving on a 60% collection rate. Well if things remain the way they are even with this increase CP will still not have sufficient funds to meet their licence requirements. Where are you Nersa? Keeping you heads down as usual I suppose.

  • Kurt - 2011-06-10 15:43

    Please get the facts before commenting at random!!!!!

  • Snowbuddy - 2011-06-13 16:14

    and we seek at least a 22% increase in service delivery to get our meters read, bills corrected .... which is something we have been battling to do for the past 3 years ... why pay more when we get less???

  • Cire - 2011-06-13 19:32

    They must be out of their tiny little minds!

  • td89 - 2011-06-15 09:50

    JOBURG "CITY" COUNCIL - SWITCH OFF THE STREET LIGHTS!!!!!!!!!!!!!!!!!!!!!!!

  • Just Someone - 2011-06-20 17:28

    If this additional increase happens, I am cutting my electricity. No way I can afford it anymore. Let the lazy ANC and their voters take and enjoy the free power they are provided. At least if I don't pay for it, I won't contribute to this robbery. I would love to see them generate power and the white people that paid for it in the past stopped their contributions.

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