The Mossel Bay Municipality is proposing the introduction for the first time of an inclining block tariff in respect of unit charges for electricity sold to domestic consumers with effect from 1 July 2013.
This was announced by the Executive Mayor, Alderlady Marie Ferreira, when she tabled the Municipality’s draft budget for the 2012/2013 financial year at the monthly Council meeting on 29 March 2012.
She said the first 20 units for all consumers and first 50 units for indigent households, will still be free of charge but thereafter the unit price increases incrementally in blocks based on monthly consumption. The inclining block tariff is prescribed by the National Electricity Regulator of South Africa (NERSA) in the tariff guidelines which they are providing.
Alderlady Ferreira said it is proposed that all domestic consumers who use an average of more than 400 kilowatt hours (kWh) per month, based on the average of the preceding four months, will be placed on the one-part tariff. Consumers using less than 400 kWh per month (based on the average of the preceding 4 months) will be placed on the two-part tariff. This, however, excludes indigent and poor household consumers as well as residents who lived at their properties for at least 9 months. The permanent residents will have to submit proof of their permanent residency in the form of a sworn affidavit.
As far as commercial tariffs (single phase) are concerned the consumers using less that 1000 kWh per month will now for the first time also pay a fixed monthly charge with a reduced tariff for unit charges compared to the commercial consumers using more than 1000 kWh per month (based on an average consumption over the past 6 months) who will pay a much higher unit charge but with no basic charge.
The same conditions will apply for three-phased commercial users, except that the limit is increased to 2000 kWh per month.
Council’s gross profit from electricity is estimated at R93,3 million for the 2012/2013 financial year, or 33,9 per cent of gross revenue. This compares with the estimated gross profit of R93 million for the 2011/2102 financial year.
Council proposed an increase of 11,03 per cent in electricity rates for 2012/2013, which is less than the Eskom tariff increase of 13,5 per cent. An increase of 10 per cent in the availability charges in respect of vacant erven is also proposed. The Municipality’s recommended electricity tariffs are still subject to approval by NERSA.