Big Joburg electricity price hikes planned

system32

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View attachment 866911
View attachment 866913
Note - exc VAT. The capacity charge is also not happening.
Add in 6c/kwh above 500 for DSM levy as well.
CoJ basically want to make pre-paid same as post-paid.
But have you noticed that pre-paid has much lower bands and more expensive units?
If CoJ want to make them the same, then CoJ must make the bands the same and also the cost of units.

The whole purpose of pre-paid is that CoJ have
-No debt collection issues
-Guaranteed payment up front
-No meter reading issues
For the customer
-No meter reading issues
-No bill shock

Why are these rates so high compared to the bulk rates from Eskom?
 

Sinbad

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Jun 5, 2006
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72,533
CoJ basically want to make pre-paid same as post-paid.
But have you noticed that pre-paid has much lower bands and more expensive units?
If CoJ want to make them the same, then CoJ must make the bands the same and also the cost of units.

The whole purpose of pre-paid is that CoJ have
-No debt collection issues
-Guaranteed payment up front
-No meter reading issues
For the customer
-No meter reading issues
-No bill shock

Why are these rates so high compared to the bulk rates from Eskom?
Because profit on electricity is one of the city's major revenue streams
 

system32

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Because profit on electricity is one of the city's major revenue streams
I was hoping for a user-pays-principal.
Cost-reflective tariffs . The national Electricity Pricing Policy states that “tariffs must reasonable reflect the costs associated with rendering the service, including capital, operating, maintenance, administration and replacement
costs, and interest charges”

Reason enuf to switch to Solar and stop this porking.
 

j4ck455

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Jan 2, 2006
Messages
5,970
https://www.moneyweb.co.za/news/south-africa/city-power-backtracks-on-shock-prepaid-charge-again/

Effectively, postpaid customers are right now subsidising the city’s prepaid customers, who enjoy among the cheapest electricity in South Africa (almost as ‘cheap’ as those end customers supplied by Eskom directly).
That is a rather narrow-minded interpretation: prepaid should never cost more than postpaid as there is zero risk of running into a debt collection issue with prepaid, whereas there is a big risk of that with postpaid and usage cannot be limited on postpaid whereas usage is limited on prepaid.

Maybe Hilton Tarrant should stop writing bullcrap and instead convert to a prepaid electricity meter.
 

Lupus

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Apr 25, 2006
Messages
26,767
https://www.moneyweb.co.za/news/south-africa/city-power-backtracks-on-shock-prepaid-charge-again/



That is a rather narrow-minded interpretation: prepaid should never cost more than postpaid as there is zero risk of running into a debt collection issue with prepaid, whereas there is a big risk of that with postpaid and usage cannot be limited on postpaid whereas usage is limited on prepaid.

Maybe Hilton Tarrant should stop writing bullcrap and instead convert to a prepaid electricity meter.
Prepaid carries no risk, but it's also a little bit more pricey per unit.
 

j4ck455

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Jan 2, 2006
Messages
5,970
Prepaid carries no risk, but it's also a little bit more pricey per unit.
Yep that higher per unit prepaid price is annoying.

Switching to prepaid also means less risk for the customer as CoJ is known for billing discrepancies that in some cases have never been resolved.

Has NERSA even pre-approved the as yet unpublished tariff changes that the CoJ has accepted?
 

DeShizz

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Mar 19, 2014
Messages
30
Okay so I don't know if anyone is still reading this thread but I made a calculator of sorts to work out where the inflection point is with new electricity tariffs.

*drum roll*

Looks like it's around 2815 kwh per month. Off to council tomorrow to switch. Haven't included DSM levy since it applies equally here right?

tarriffs.png
 
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