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'Hurry up with power price hikes'
08/07/2008 15:23 - (SA)
Johannesburg - Municipalities have been urged by the National Energy Regulator of South Africa (Nersa) to implement revised
electricity tariff increases before October this year.
Nersa on Tuesday said this would minimise the financial impact on the municipality and customers.
The regulator last month approved a 13.3% average electricity price increase in addition to the 14.2% already approved in December last year.
This will result in a 27.5% average increase year on year.
But despite the increase, Nersa decided that poorer residential customers would not be charged more than the initial 14.2%.
Nersa said in a statement on the revised municipal guidelines for 2008/09 that the increase for municipal customers (excluding poorer residential customers) would be 32.6%.
This 32.6% increase includes the previous Nersa decision of a 12% guideline increase for 2008/09 for municipalities effective July 2008 and a further guideline increase of 20.6% to be implemented before October 2008.
The regulator said those municipalities that implemented a 12% increase with effect from July 2008 would only implement a further guideline increase of up to 2.2% for poorer residential customers, and 20.6% for other customers.
"The municipal additional increase will be treated as a pass through increase," Nersa said.
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