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Should the cost of providing electricity not be included in the price of electricity? What are we paying rates and taxes for? None of this makes sense....Electricity tariff increase on the cards for Cape Town
http://www.capetownetc.com/news/tariff-increases-await-capetonians/
Speaking to KFM this morning, Hoosain Essop, manager for Electricity Retail Management at the City of Cape Town, said that the Home User Tariff will apply to residents who have prepaid electricity meters and live in a home with a value of R1-million or more. It will also apply to residents who use a credit meter, irrespective of the value of their home.
The affected homeowners may have to pay a flat rate of R150 per month, in addition to other municipal costs. The fixed charges will be used for maintenance and operating costs.
Essop explained that less than 200 000 residents will be affected by this tariff, as it only affects users who consume less than 600 kilowatts of electricity per month.
Thereafter, residents will pay the following tariffs:
– R1.8532 per kilowatt for less than 600 units per month
– R2.1032 per kilowatt for more than 600 units per month
“If you use more than six-hundred units, you won’t really see a difference in the cost of electricity because you pay a reduced fee in your unit charge,” Essop said.
He also added that the City wants residents to pay their fair share of the cost of providing electricity.