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 Joburg tariffs to be hiked again

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PosOnderwerp: Joburg tariffs to be hiked again   Wed Apr 07, 2010 10:01 pm

Joburg tariffs to be hiked again
Apr 07 2010 13:46

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Johannesburg - The initially approved municipal tariff rate of 24.8% finalised by the City of Johannesburg is going to be revised to 28.9%, executive mayor Amos Masondo said on Wednesday.

Masondo said in a statement that the revision came after "the city learnt with shock" that municipal tariff rates would be increased by 28.9%.

This hike follows the recent approval of an Eskom tariff of 24.8% for three years by the NationalEnergy Regulator of South Africa (Nersa).

"The City of Johannesburg has learnt with shock that the municipal tariff rates will be increased by 28.9% from the July 1 2010, to June 30 2011.

"This is worsened by the fact that in Johannesburg we had already approved our tariffs based on the 24.8%. We are now forced to go back to the drawing board to review our tariffs based on the 28.9%," Masondo said.

He said if the city did not review the rate, it would lose more that R200m.

"In the City of Johannesburg we are extremely disappointed in these electricity hike prices for three successive years approved by the energy regulator, Nersa," said Masondo.

"It would do this country a lot of good if Eskom could be forced to reduce or improve its inefficiencies which are unacceptably high.

"If Eskom could reduce its losses, tariffs would not be so high. Their tariff structure seems to have not taken [into consideration] sociopolitical challenges that this country faces," he said.

Masondo said the city had been placed in "an unenviable situation" because it received the bulk of its electricity from Eskom.

- Sapa
http://www.fin24.com/articles/default/display_article.aspx?ArticleId=1518-25_2578667
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