City Power on Monday announced electricity tariff hikes of more than 7 % – an above-inflation increase.
The annual inflation rate in South Africa in May 2022 was 6.5%.
City Power said after an extensive public consultation process under the City of Johannesburg, it applied to NERSA and was granted an average tariff increase of 7.47% with effect from 1 July 2022.
“The increase in City Power tariffs is within NERSA guidelines and is essential to cover the increased cost of bulk purchase from Eskom (8.61%), as well as to cover inflationary (4.4%) adjustment to City Power operating cost,” said City Power Spokesperson Isaac Mangena.
“All City Power tariff sub-categories are increasing by 7.47% except for the business convention tariff that has been limited to 4.4% to gradually align with the NERSA benchmarks for the particular customer category.”
Mangena said customers consuming 500kWh will, going forward, be paying R1 094.89 inclusive of VAT which is R76.10 more than it was last financial year.
“City Power in its operations, always strives to ensure that electricity is available and is affordable for our customers who are already buckling under tough economic conditions,” said Mangena.
“It’s for this reason that while Eskom’s average tariff increase for 2022 is 9.61%, with an increase of 8.61% levied to municipalities including us at City Power, we managed to get our average tariff increase for 2022 at 7.47%, which is differentiated for the different customer categories.”
City Power has 22 different tariffs for its 4 different customer categories namely residential, business, agricultural and large power users.
The new tariffs are available for customers on: www.citypower.co.za
