Joburg not the first to implement fixed electricity fee

[Daniel Puchert]

Truth about Joburg's R230 electricity fee

While many Johannesburg residents are up in arms about a new R230 fixed prepaid electricity charge, people in other parts of the country have been subjected to similar charges for years.

The City of Joburg (CoJ) first voted to implement the controversial charge during a council meeting in 2018, with a plan to introduce it in 2019.

 

[charlieharper]

Nice photo of Joburg...

 

[phoneJunky]

Joburg really should have fixed their indignant list before applying this. The should let people register to be on this list to rectify this situation, with maybe a month’s line cost credit.

 

[Hemi300c]

Oh, so that makes it ok then..................

 

[dualmeister]

CPT have been paying this since about July 2018 already.
You guys in JHB can afford it with your fat salaries

 

[phoneJunky]

Oh, so that makes it ok then..................

I am not saying it is okay. But that is what is decided and the implementation of it was really bad.

Delivery charges for electricity is implemented in many countries. Seems in some US states it is over $100 to the apartment if you look at the complaints on reddit

 

[CraZee]

Prepaid users pay more per kWh already for exactly this reason. Why also slap on an additional surcharge to apparently make it more fair

 

[WollieVerstege]

CPT have been paying this since about July 2018 already.
You guys in JHB can afford it with your fat salaries

Except in Cape Town the unit cost of electricity actually went down that year to compensate for the fact that the fixed component of the charge was removed. Doubt that happened in JHB.

 

[shadow_man]

They can kiss their R230 goodbye!

 

[shadow_man]

Except in Cape Town the unit cost of electricity actually went down that year to compensate for the fact that the fixed component of the charge was removed. Doubt that happened in JHB.

Yet I bet you're probably still paying less per unit

Cheaper property, less rates, less electricity cost - complain more

 

[porchrat]

Except in Cape Town the unit cost of electricity actually went down that year to compensate for the fact that the fixed component of the charge was removed. Doubt that happened in JHB.

It just makes sense that this happens along with the fixed fee. I think everyone understands that a fixed fee makes sense. However you can't then keep baking the cost of infrastructure to supply the electricity into the cost per unit. Then you're just double charging. In fact there should be a very limited markup allowed on the units supplied at that point. The whole point of the markup is to allow the muni to cover costs to supply.

 

[WollieVerstege]

It just makes sense that this happens along with the fixed fee. I think everyone understands that a fixed fee makes sense. However you can't then keep baking the cost of infrastructure to supply the electricity into the cost per unit. Then you're just double charging. In fact there should be a very limited markup allowed on the units supplied at that point. The whole point of the markup is to allow the muni to cover costs to supply.

Agreed. I was already pretty much off the grid at that point, but my friends and neighbours mentioned that the amount of electricity they were buying + fixed charge combined increased by the NERSA approved %. I am happy with that approach.

Down side for me as a land lord was that the fixed cost shifted to the rates account that I had to pay where as my tenants were now getting more electricity for the same money, they were ecstatic about that. Took me a while to re-align all the rental agreements.

 

[Lupus]

Except in Cape Town the unit cost of electricity actually went down that year to compensate for the fact that the fixed component of the charge was removed. Doubt that happened in JHB.

Nope the tariff went up

 

[WollieVerstege]

Nope the tariff went up

Sad for you, was the combined increase at least equal to the increase approved by NERSA?

 

[Lupus]

Sad for you, was the combined increase at least equal to the increase approved by NERSA?

Nope the increase in the tariff was the approved by NERSA, the R230 is a 25 to 100% increase for consumers.

 

[elf_lord_ZC5]

Nope the increase in the tariff was the approved by NERSA, the R230 is a 25 to 100% increase for consumers.

Which they would not need, if they had the competence, to disconnect and police, the "electricity for free brigade"

 

[garyc]

The municipalities charge a significant markup on electricity over the price that Eskom charges them. This was always justified as being required to cover distribution costs. Now they are adding a additional fixed distribution cost. In areas where this has already been implemented did you see a drop in the price per kWh for electricity since they have moved this component to a fixed cost?

 

[elf_lord_ZC5]

The municipalities charge a significant markup on electricity over the price that Eskom charges them. This was always justified as being required to cover distribution costs. Now they are adding a additional fixed distribution cost. In areas where this has already been implemented did you see a drop in the price per kWh for electricity since they have moved this component to a fixed cost?

No

 

[Tantric Smurf]

Overstrand charges us R580 for our prepaid meters.

 

[qscwbt]

CPT have been paying this since about July 2018 already.
You guys in JHB can afford it with your fat salaries

The issue is the money wont be used for the fairy tale story they tell. It will disappear in back hole of corruption.