The municipality has noted an influx of billing queries and disputes regarding electricity charges and wishes to clarify as follows:
- Consumption of electricity between May and August is usually high for most customers due to higher winter demand and consumption
- Council-approved tariff increases on all services have been in effect since 1 July
- For Council consideration and Public Participation processes, the municipality presented 2 tariff schedules for electricity i.e. Schedule (a) which was based on the old electricity tariff structure as well as Schedule (b) based on the new electricity tariff structure as Nersa (National Electricity Regulator of South Africa) had not made a final decision on the new structure
- The court ruling on the matter between AfriForum and Nersa brought the issue of Cost of Supply (COS) being the basis upon which Nersa should approve electricity tariffs into the spotlight and in this regard Mogale City had in fact complied as the municipality not only sought a general increase but required approval for a new tariff structure
- The municipality’s new electricity tariff structure which includes inclining block tariffs was duly approved by Nersa on 28 June 2024, and these tariffs are applicable from 1 July 2024 to 30 June 2025
- The municipality further complied with the requirement of submitting a COS study to Nersa, thus the levying of electricity tariffs is legal and valid
- While the municipality notes that the increases may place an additional financial burden on residents, such increases were unavoidable as the previous tariff structure was not cost-reflective and resulted in the municipality not generating sufficient revenue from electricity to meet its costs to supply and distribute electricity to customers
- It should also be noted that Nersa considered the impact of the new structure on our customers and sought to cushion them from increased electricity tariffs by compelling the municipality to increase tariffs gradually over the next few years
Clients are therefore encouraged to use electricity sparingly to lower their bills as the tariffs are structured on the principle of “the more you use, the more you pay”.
Approved tariffs and Nersa’s letter of approval are available on the website.
Clients with queries are encouraged to visit our Revenue offices or contact our Customer Care Centre on 086 166 4253, email customerservices@mogalecity.gov.za or WhatsApp to 083 787 2814.