Joburg seeks 22% power tariff hike
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.