[Listen] How the new proposed electricity tariff will affect Capetonians

The City of Cape Town has put together a proposal that will change how electricity tariffs are charged. The city will soon introduce what it calls 'the home user tarrif'.

Ian Neilson, executive deputy mayor, says the new system will affect those on credit meters as well those on prepaid meters, with property valued at more than R1 million.

There have been some trends over the last few years that have been affecting the structure of sales of electricity. This stems from the massive increase in electricity from Eskom.

Ian Neilson, Executive Deputy Mayor

We've seen since 2009, a drop in our total sales during the course of the year.

Ian Neilson, Executive Deputy Mayor

Neilson says the City still carries the same costs for an electricity distribution system but selling less electricity. He adds that more and more people are moving to the lower bands which were never intended for middle class and wealthier households.

Take a listen in the clip below:


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