FINANCE & ECONOMICS
The Tshwane Electricity Tariff Debacle
Craig Herbst, Technical Director, South Africa
14 August 2019
There is finally a way forward in Tshwane’s bungled electricity tariff review process for 2019/2020, which saw Afriforum blocking CoT’s attempts to completely restructure their tariffs.
Whilst there is no doubt that these tariffs do need to be re-engineered to be more cost-reflective, Tshwane failed to follow the correct procedures to bring their new ideas into effect. Of major concern too was the fact that CoT appears incapable of communicating anything accurately – their website cannot be relied upon for factual tariff information, and the confusion around the mooted “fixed charge” (R200 or R56 or whatever number you stumble across) is unfortunately too typical.
NERSA have intervened, and pulled the plug on Tshwane’s grand plan. But its not all good news for consumers: they have approved an across the board 13.07% increase which, if my interpretation of news reports is correct, will be applied on a line-by-line basis to the 2018/2019 tariff.
Electricity costs are an emotive issue, and I can almost hear the ranting and gnashing of teeth from the residents of the Capital City at this news. But we need to accept that, corruption and maladministration aside, this city needs revenue to operate. As the primary income stream, electricity simply will not get less expensive.
“But its not all good news for consumers: they have approved an across the board 13.07% increase”
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