An aerial view of the Pietermaritzburg City Hall, seat of the Msunduzi Municipality. The municipality’s proposal to introduce a fixed charge for electricity for some customers has been met with opposition. File Picture: Shelley Kjonstad Independent Newspapers
A move by the Msunduzi Municipality to generate more revenue through the sale of electricity has raised fears that Pietermaritzburg residents could face very high electricity costs.
A single sentence contained in the draft document regarding the city’s tariffs has alarmed opposition councillors, who warn that it indicates the city is planning to charge residents higher tariffs, on top of the 36% electricity tariff hike proposed for the next financial year.
In the report detailing the new proposed tariff for 2025, the document mentions a fixed charge for prepaid customers. “For the municipality to improve its revenue, it needs to implement fixed charges on the prepayment tariffs,” stated the document.
The city, however, said if implemented, it would apply to large consumers of electricity who would be moved to a prepaid system.
Councillors have warned that should this proposal be implemented, it could bankrupt those who are paying and lead to more customers stealing electricity.
ACDP councillor Rienus Niemand said they are opposed to this fixed tariff.
Niemand said there were 40 000 prepaid meters but electricity was being purchased for only 15 000; the remaining meters had been tampered with and these customers were stealing electricity.
“It is clear that this new trick is just another way to fleece the already overburdened consumer in order to subsidise the consumers that are stealing. The ACDP calls on Nersa and the MEC to intervene.”
DA caucus leader Ross Strachan said the party is calling for the implementation of progressive tariffs where lower consumption is priced more affordably.
“Fixed charges on prepaid meters at this stage while the municipality has no capacity to administrate is daylight robbery,” he said.
Anthony Waldhausen, CEO of the
Msunduzi Association of Residents, Ratepayers, and Civics, said the organisation was opposed to the “money-making scheme”. He said the municipality was failing to deal with the 70% of non-paying consumers and illegal connections.
Municipal spokesperson Ntobeko Mkhize said: “The basic charge has not yet been implemented. However, it is designed to target higher-end consumers, typically those drawing significant amounts of resources.
“The implementation of prepaid systems for higher-end consumers has been proposed; however, the tariffs associated with this system now require a review.”
Related Topics: