Just News |
City Power applied to NERSA for an average tariff increase of 7.47% with effect from this month July 2022.At the time of the public consultation process it was expected that the Electricity tariffs will on average increase by 9.61%.
City Power has 22 different tariffs for its 4 different customer categories namely residential, business, agricultural and large power users.
City Power Spokesperson Spokesperson Isaac Mangena said all City Power tariff sub-categories are increasing by 7.47% except for the business convention tariff that has been limited to 4.4% to gradually align with the NERSA benchmarks for the particular customer category.
The increase in City Power tariffs is within NERSA guidelines and is essential to cover the increased cost of bulk purchase from Eskom (8.61%), as well as to cover inflationary (4.4%) adjustment to City Power operating cost.
“Its for this reason that while Eskom’s average tariff increase for 2022 is 9.61%, with an increase of 8.61% levied to municipalities including us at City Power, we managed to get our average tariff increase for 2022 at 7.47%, which is differentiated for the different customer categories”.