Steep electricity tariffs cause outcry in Western Cape legislature

27th August 2021

By: News24Wire

  

Font size: - +

Opposition parties in the Western Cape legislature have attacked the City of Cape Town's electricity hike and questioned whether relief to residents will be widened.

GOOD general-secretary Brett Herron accused Local Government and Environment MEC Anton Bredell of being a "messenger for the City".

Bredell was answering questions in the legislature on Thursday on what interventions were initiated by his department to ensure the City broadens its scope and resources to assist more people and those who are unable to cope with the hike in electricity tariffs.

The City implemented a 13.1% increase in its electricity tariffs that kicked in at the beginning of July, despite strong opposition from residents.

Herron said: "He (Bredell) was basically channelling the City's talking points without regard for the facts. The facts are that the City has hidden charges in its gross electricity tariffs and residents and businesses are noticing the cost of living and doing business in this City.

"It is unaffordable. It is not true that the City of Cape Town is the cheapest place to live, but it also is irrelevant – we live here, not in Joburg or Durban."

He added that the City made surpluses or profits off electricity and water charges and was accumulating massive bank balances.

"Residents are struggling and the MEC and the DA don't care. The fact that the question was answered is surprising, since the City has refused to answer all of my parliamentary questions claiming they are a separate sphere of government and not accountable. It seems the MEC picks and chooses what questions to answer."

ANC MPL Nomi Nkondlo said the party was "not surprised by the defence put up by Bredell over the City's exorbitant electricity tariffs structure at the expense of citizens who have been outraged at the pressure placed on them in these difficult economic times".

"He chooses to be its spokesperson, always making unsubstantiated arguments [rather] than the lived experiences of many middle-class, poor and working-class households that have had less electricity units than their money can pay for. This is against their 'well-governed DA' and 'City that works for its citizens' rhetoric and propaganda that can no longer hold."

Bredell told members of the legislature the City managed to stick below the national increase to municipalities.

"This means the cost to the City is more to buy electricity than cities situated closer to Eskom generation plants. The City has indicated that all income from electricity sales go towards the provision of service delivery," he said.

Bredell added that the City's tariffs were the lowest among all metros.

"City residents get more units compared to Johannesburg; Cape Town is R300 cheaper."

The City has maintained it does not have the most expensive tariffs in the country.

In a statement released earlier this month, it said it now costs municipalities 17.8% more to buy power from Eskom.

The majority of the City's electricity tariff income is used to buy power from Eskom, and now at higher prices.

"The fixed charge is an established part of tariffs, not only in Cape Town but also in the rest of the country, as it ensures that income is stable, irrespective of how much or how little is used.

"This enables a service provider such as the City to provide reliable services. The City's fixed charge as part of the electricity tariff was approved some years ago. It is not new," it said in a statement.

Edited by News24Wire

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION