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.