Ndlambe Municipality has agreed to meet with the Port Alfred Ratepayers and Residents Association (PARRA) at 10am on Tuesday September 10 to address concerns about the recent increases in electricity tariffs. This comes after PARRA formally declared a dispute with Ndlambe over the municipality’s new electricity tariffs. The organisation questioned the legality and the calculation methods of the considerable 2024-2025 electricity tariff increases..
In a letter signed by vice-chairperson Dawie van Wyk and dated August 27, PARRA said, “The sudden increase in electricity tariffs… has placed an undue financial burden on many of the ratepayers and residents in the community.” PARRA asked Ndlambe Municipality to provide a detailed breakdown of the factors contributing to the tariff changes and a “transparent” explanation justifying the need for such adjustments.
“Additionally we seek clarity on the process followed in determining the new tariffs and whether due diligence was conducted to ensure fairness and affordability for all consumers.”
PARRA said they believed there was insufficient notice of any public participation, the tariffs were based on the location of income groups, and the tariffs were punishing residents and ratepayers for installing small-scale embedded generators (SSEGs).
PARRA said it had been nominated as spokesperson for the dispute by several businesses and prominent individuals, as well as the Port Alfred Business Forum. Ndlambe Municipality had agreed to meet with PARRA at 10am on Tuesday September 10 2024 to address the issues and attempt to reach a resolution.
Domestic users can find a detailed explanation of the new tariff structure and the background to the cost of supply approach here: https://bit.ly/TOTTNewElecTariffs
The Ndlambe Ratepayers Forum earlier this year summarised the following key points about proposed tariffs for Ndlambe Municipality as from 1 July 2024:
- The average electricity price increase of 13% will be applied.
- Various electricity tariff structure changes will be applied according to the categories small consumer, bulk consumer, small scale energy generators. Small consumer (less than 3 x 100 Amps) domestic and commercial tariffs will be linked to the capacity limit of the supply as follows:
– Indigent consumers will be limited to 20 Amps single phase. They still receive the 50 kWh/m for free.
– A 20 Amp single phase tariff is available for poorer low consumption consumers, but not indigent. It does not contain any fixed charges.
– Consumers with capacity exceeding 20 Amp single phase will be charged a basic charge, a capacity charge based on the capacity limit and an energy charge.
Due to the late approval by NERSA, the municipality would place all consumers on an appropriate capacity based on each consumer’s historic consumption as follows:
▪ < 400 kWh/m – 20 Amp single phase
▪ ≥ 400, <600 kWh/m – 30 Amp single phase
▪ ≥ 600, <800 kWh/m – 40 Amp single phase
▪ ≥ 800, <1000 kWh/m – 50 Amp single phase
▪ ≥ 1000, <1200 kWh/m – 60 Amp single phase
▪ ≥ 1200 – Extra 200 kWh/m add 10 Amp per phase
The July 2024 Municipal bill would be based on the Municipality’s capacity selection in the event that the consumer did not submit an application by 31 July 2024.
These changes would be phased in over three years. Consumers can obtain detailed information in order to understand the potential impact on their electricity cost and management of loads, to apply for the required capacity and to apply for SSEG HERE.
On 28 June 2024, the High Court granted an order in terms of which NERSA’s mechanism for approval of municipal electricity tariffs as set out in its Notice to Municipal Licensed Electricity Distributors dated 29 January 2024 was declared unlawful, invalid and of no force and effect.
Explaining the ruling to its members, the South African LocaL Government Assosication (SALGA) said the practical implications were that municipalities were not entitled to charge their end-user customers the electricity tariffs approved as part of their 2024/2025 financial budget if such tariffs had not been approved by NERSA based on cost of supply studies.
Ndlambe Municipality appointed consultant Hendrik Barnard who conducted cost of supply studies and presented the findings and implications at ward based IDP imbizos earlier this year.
- This article was first published in Talk of the Town, September 5, 2024. The newspaper serving the communities of Ndlambe and the Sunshine Coast, with a weekly wrap of Makhanda news, is available at stores from early on Thursdays.
