City of Joburg's electricity tariff structure criticised for being complicated

The city was compelled to raise its billing in line with Nersa's guidelines and will bill customers through something called 'inclining block tariff methodology'.

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JOHANNESBURG - Residents in Joburg are already struggling with job losses and salary cuts brought on by the COVID-19 lockdown and now they'll have to fork out even more for electricity.

Prepaid electricity users were dealt another blow after City Power increased its electricity tariff by 14.59%, which took effect last month.

The city was compelled to raise its billing in line with Nersa's guidelines and will bill customers through something called "inclining block tariff methodology".

The metro's tariff structure has been widely criticised for being exceedingly complicated as it divides the electricity price into several blocks.

“Customers that have been consuming 350 kilowatts per month will therefore pay R75.61 cents more, which means that the tariff applicable increases as the actual monthly consumption exceeds their respective threshold for block one, block two and block three of the 350kW, 500kW and any usage about 500 kilowatts.” City Power spokesperson Isaac Mangena explained.

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