- Cape Town has the lowest electricity tariffs says, economist
- Urges disgruntled consumers to file complaints at NERSA
In an interview with Refilwe Moloto, Chief Economist, IQ Business, Sifiso Skenjana stated that Cape Town consumers’ electricity tariff is the lowest average electricity tariff in South Africa. Like other South African municipals, the tariffs for Cape Town were increased following the approval of the National Energy Regulator of South Africa (NERSA).
According to Skenjana, Cape Town can’t sneak in surcharges in the tariffs because NERSA regulates the pricing approach for both Eskom and the municipalities. ”NERSA regulates the pricing approach, both for Eskom and local governments… It’s complex… You get a baseline tariff from Eskom, and then at the municipal level, you account for infrastructure issues and socio-economic issues… Then there’s the demand factors… and usage….” Skenjana said.
Skenjana further stated that the City of Cape Town does not pass all of its costs to the consumers; rather, it standardises its approach to electricity pricing. ”We can’t standardise the rate, but we standardise the approach to pricing… They [municipalities] aren’t allowed to work outside the bounds of the pricing approach…” he said.
On the rising number of people taking to social media to allege a higher tariff for electricity in Cape Town, Skenjana says, ”Disgruntled consumers can go to Nersa… There are provisions to lay a complaint….”