Residents and civil society organisations who protested against the City’s electricity tariffs have expressed frustration that the municipality issued a media statement in response to their grievances, instead of meeting for meaningful engagement.
Last weekend, civil society, union, political parties and residents came together calling for a revision of the entire Electricity Tariff Setting policy and the “inadequate implementation of public participation”, among others. They are opposing the City’s 17.6% electricity tariff hike for 2023/24. This is 2.5% more than the National Energy Regulator of South Africa (Nersa) approved 15.1%.
They also called for a senior-level panel with in-depth knowledge and the necessary authority to champion a remedy of their grievances.
In its response, the City maintained its stance on the 17.6% electricity tariff increase.
“The City’s tariff increase is driven by Eskom’s 18.5% increase.
The City’s tariff decision is based on a detailed Cost of Supply calculation to ensure the tariff covers the cost of providing an electricity service, investment in infrastructure, and plans to end load-shedding. As per the Electricity Regulation Act, tariffs must be set to recover costs and a reasonable margin to maintain and invest in infrastructure.
“Regarding the City’s operating cash bank balance, this is what municipalities are all required by law to have in order to maintain a cost coverage guarantee at a rate of between of 1 - 3 months.”
The City said a portion of electricity sales is ring-fenced as a contribution towards streetlights and other rates-funded services under the Constitution which amounts to 37,57c per unit on the Domestic and Home User tariffs.
“Ceasing this contribution would require the recovery of these costs via significantly increased property rates,” the municipality said, later adding it was a leader in indigent relief and support for lower income households.
Following the City’s statement, STOP COCT’s, Sandra Dickson said it was disappointing but to be “expected from an administration marked by arrogance and being unresponsive”.
“It is really disappointing that the City chose to respond via a media statement and not engage in person. Nothing is said in the press release about the request for a high level panel to act as liaison between the City and the public. Brushing the public off is a gross failure to uphold the public’s Constitutional right to take part in participative governance. It is disingenuous and not in the public interest for the City to attempt to justify its exploitative tariff setting policies by taking Nersa to court using public funds to do it,” she said.
Cape Times