Cost of Electricity - Increase later this year

Will we be gouged?

City Power provides me with electricity. The cost I pay should be what CoJ pays Eishcom plus a bit more to cover costs of delivery (Admin, maintenance on city infrastructure etc).

Just to keep number simple:

Esihcom cost: R100
CoJ cost: R10

I get a bill for R110.

Now we get the annual cost adjustment - and again, being simple, the adjustment is in line with 5% inflation.

So my bill should be R105 + R10.50 = R115.50

Eishcom has now decided that I need to pay for bad management so have said the rate will increase by 14% (or whatever it is)

I would argue that my bill should be R114 + R10.50 = R124.50

What bets that it will be R114 + R11.40 = R128.40?

City Power will gouge that extra but without any justification.

Thoughts?

lol @ 5% inflation.


but yes, you are quite right.
We will be gouged.

The new Rates in Taxes tables are coming soon? (Property valuation changes)

Ricard said:

The new Rates in Taxes tables are coming soon? (Property valuation changes)

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SHUT UP!

Ricard said:

The new Rates in Taxes tables are coming soon? (Property valuation changes)

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That is so cool but what does it have to do with the price of eggs? Or electricity?

Albereth said:

That is so cool but what does it have to do with the price of eggs? Or electricity?

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was a bit OT.. I know, but its part of my council bill that has electricity on it if you are billed by the council, you cannot choose 'what to pay'
Electricity, Water, Sewage , Rates in Taxes are all on the same invoice.

LOL - but wait for the backlash. Property prices are falling so there will be a mad scramble to up rates to keep the same income for the councils - and the poor will get screwed again relatively speaking.

10% fall in market price on mansion in northern suburbs means less mone for council. The way it all works is that council now has to make rate equal x plus y cents in the rand. Guy in northern suburbs pays (x+y) * less rands = not quite as much as before.

The chap in the dump/low cost house finds his house hasn't dropped in value by 10%, in fact it probably won't drop at all. He will be paying (x+y)* the same rands = a bit more than before.