Joburg tariff rates rise, mayor slams Eskom

2010-04-07 12:57

The initially approved municipal tariff rate of 24.8% finalised by

the City of Johannesburg is going to be revised to 28.9%, executive Mayor, Amos

Masondo said today.

Masondo said in a statement that the revision came after “the city

learnt with shock” that municipal tariff rates would be increased by

28.9%.

This increase comes after the recent approval of an Eskom tariff of

24.8% for three years by the National Energy Regulator of South Africa

(Nersa).

Masondo said: “The City of Johannesburg has learnt with shock that

the municipal tariff rates will be increased by 28.9% from July 1, 2010, to June

30, 2011.

“This is worsened by the fact that in Johannesburg we had already

approved our tariffs based on the 24.8%. We are now forced to go back to the

drawing board to review our tariffs based on the 28.9%.”

He said if the city did not review the rate, it would lose more

that R200 million.

“In the City of Johannesburg we are extremely disappointed in these

electricity hike prices for three successive years approved by the energy

regulator, Nersa,” said Masondo.

“It would do this country a lot of good if Eskom could be forced to

reduce or improve its inefficiencies which are unacceptably high.

“If Eskom could reduce its losses then tariffs would not be so

high. Their tariff structure seems to have not taken socio-political challenges

that this country faces,” he said.

Masondo said the city had been placed in “an unenviable situation”

because it received the bulk of its electricity from Eskom.


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