HomeIndustry SectorsFinance and PolicyPower tariffs up by 20% in Cape Town

Power tariffs up by 20% in Cape Town

Cape Town “’
electricity rates
rising by 20%
Cape Town, South Africa — ESI-AFRICA.COM — 22 June 2011 – The price of electricity is to increase nearly 20% in the City of Cape Town from next month.

“As a result of Eskom increasing its bulk selling price of electricity to the city of Cape Town, the city has had to increase its electricity tariffs to its customers for the 2011/2012 financial year, and the new tariffs come into effect on 1 July 2011,” it said in a statement here.

The city would pay Eskom 26.71% more for power, and pass an increase of 19.94% on to its residential consumers. This would allow the city to upgrade and extend its electricity network.

“The majority of the residential customers will, however, see an increase of less than the average 19.94%, as only the small percentage of customers in the city that use over 1000 kWh (kilowatt hours) per month will be subject to above-average increases,” the statement added.

Only City of Cape Town electricity users would be affected, not residents who fell into Eskom distribution areas such as parts of Table View, Durbanville and Khayelitsha. The Eskom hikes were implemented in April.

Over three years the city intended spending R174 million on electrifying new areas to eradicate its infrastructure backlog, R653 million for refurbishing electrical networks, R30 million for installing pre-paid meters, R92 million for public lighting and repairs, and R1.3 billion for new electricity infrastructure.