The City of Cape Town says the National Energy Regulator of South Africa (NERSA) approved its electricity tariff hikes.
This comes after civic organisation Stop CoCT said it is taking the City to court over its home-user and surcharge rates.'
The City met Nersa and the organisation, which had disputed the City’s electricity tariffs.
Speaking to Refilwe Moloto, founder of Stop CoCT Sandra Dickson says they investigated the tariffs by the City from the past ten years.
A discrepancy started to creep in between the Nersa approved tariffs and the electricity tariffs the City of Cape Town has been implementing.— Sandra Dickson, Founder - Stop CoCT
We found that from 2015 onwards the discrepancy increased. This year the discrepancy ranges between 6 and 15.4%.— Sandra Dickson, Founder - Stop CoCT
City of Cape Town electricity retail manager Hoosain Essop says Nersa approved the tariff hikes.
Nersa did approve our tariffs and they agreed that the City has implemented the approved tariffs of Nersa. However, there is a portion which they don't have the mandate to approve which the City did add to the tariffs.— Hoosain Essop, Electricity retail manager - City of Cape Town
Essop says the surcharge is made up of two items.
The first is a surge implemented by the City on consumptive tariffs of 23 cents and is a contribution to rates.
The second is the cost for the installation, burning rates, maintenance and repairs of the City's lights, he explains.
Some municipalities have the surcharge built into their consumptive tariff.— Hoosain Essop, Electricity retail manager - City of Cape Town
Listen to the full interview below...
This article first appeared on CapeTalk : City of Cape Town explains why it hiked electricity tariffs