Johannesburg executive Mayor Amos Masondo will propose a 30 percent rate increase for electricity costs, in expectation that the National Energy Regulator of SA (Nersa) will approve a 30 percent tariff increase for Eskom, the national electricity supplier.

“Basically we have provided for an increase of 30 percent on Eskom's behalf, but if they do go for the 34 percent, it will mean a four percent impact on all accounts, but we will go back to council with a new tariff proposal in that regard,” said Rosslyn Greef, mayoral committee member for infrastructure and services.

In the current proposal, residents can expect a 30 percent increase on their electricity bills, should the budget be approved.

“We'll be paying 30 percent at this stage. It's quite hard to average, tariffs reflect differently on different levels, as the more you use, the more you pay, but that is the average we cater for,” said Greef.

“We hope that Nersa will approve an increase of 30 percent so that we do not have to go back for a further increase that will impact on ratepayers.”

The city expects an increase of revenue through electricity from R5 564 857 in the 2008-2009 budget to R6 909 043 for 2009-2010.

Masondo said they allocated a budget of R825-million for City Power.

“Bulk infrastructure in various areas has been allocated R246 million, public lighting R60-million, electrification of Ennerdale South and various areas R92-million," said Masondo.

He added that network upgrade in various areas had been given R46 million, metering R36 million, service connections R70-million, load management R77 million and replacement of cables R94-million.

Sapa

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