FROM ENERGIZE E-NEWS FOR SEPTEMBER 2011 (by Roy Macey PREng)
Eskom’s exorbitant price hikes – both past and projected – have been extensively covered in the press but,
surprisingly, no mention has been made of those who have recently had to face a single, whopping 76% increase.
These are the people living in townhouse complexes who receive a bulk supply. These are the people who provide
and maintain their own high- and low-voltage cables, switchgear, protection, mini-substations and metering but yet
My ref: Tel: 012 358 9999
Your ref: Fax: 012 359 6111
Email:
[email protected]
Date: 18 September 2011
Finance Department
Revenue Management Division
1st Floor I BKS I 373 Pretorius Streets I Pretoria I 0004
PO Box 408 I Pretoria I 0004
Tel: 012 358 9999 I Fax: 012 359 6111
Email:
[email protected] I
www.tshwane.gov.za
pay far more than the individual home dweller who has everything provided. These are the people – many of whom live in small sectional title units on meagre pensions – that are really being ripped off.
According to Eskom, their bulk tariff was abolished at the instruction of “The Regulator” who insisted on inclined block tariffs. However, they are applying the inclined block tariff sliding scale as if the townhouse developments are a single householder. Consequently, every resident is effectively paying the top-of-the-scale rate of R1,20/kWh (including the energy charge and VAT) for their entire usage, no matter how low it is.
The fact that we have had bulk supply of water on fair inclined block tariffs to townhouse developments for several years seems to have been ignored. Perhaps the simple concept of multiplying the threshold levels of the scale by the number of units and charging accordingly is too “complex” for Eskom and the Regulator. Instead of just doing the basic arithmetic, Eskom’s stated solution to the problem is to introduce time-of-use tariffs on their bulk supplies.
The stupidity of this is twofold, namely:
•This involves the high costs of installing new and sophisticated metering at every supply point. Worse, Eskom do not appear to have the money and/or staff available to undertake this exercise. Hundreds of complexes that applied, (yes, you still have to apply for their enforced change), over a year ago, are still waiting. Mind you, would you rush to convert your customers to something more reasonable when you can fleece them in the interim?
•The introduction of time-of-use tariffs to bulk supplies will yield no benefit to Eskom but will give the trustees of these complexes a management nightmare. Very few existing developments will have the finances to install a time-of-use meter at each unit. There will thus be no incentive to the occupant to limit his usage during peak periods. Moreover, at the end of the month, the trustees have no means of fairly allocating the costs to the individuals.
I have been told by various sources within Eskom that, until they get their act together, bulk users can apply for transfer to a “Business” tariff to gain some temporary relief. My application, as a trustee of a large complex, remains unattended after three months. In view of the economic hardship being suffered by many – particularly those in retirement villages – I suggest the bulk tariffs be immediately re-instated with thresholds at the levels to cater for the number of units in the schemes and, further, that the gross overcharging of consumers since the introduction of the change in April/May 2011 be refunded.
For more info, contact Roy Macey PrEng, Mace Technologies, Tel 011 805-8393,
[email protected].
Sorry to be the bearer of bad news, but forewarned is fore-armed. Please don’t shoot the messenger!
With kind regards
Vickey
Vickey Bosch
Councillor for Ward 79
