The decision by the ANC/EFF government in the Mogale City Local Municipality (Krugersdorp, Magaliesburg, Muldersdrift) to revert to a more affordable electricity tariff structure is a major victory for the Freedom Front Plus (VF Plus).
Over the past months, Freedom Front Plus councillors strongly objected on several occasions during council meetings to the block tariff system that the ANC/EFF government imposed on residents through the Council.
The block tariff system resulted in residents and businesses having to pay significantly more for electricity as their consumption increased. For example, when electricity consumption rose to block 4 – as is commonly experienced during the third and fourth week of each month – the price of electricity per kWh increased by as much as 65%.
Because meters are also not read on the same day each month, the block tariff system sometimes resulted in the highest tariff being charged unnecessarily when, for instance, up to 35 days had gone by between meter readings.
In response to pressure from, among others, the Freedom Front Plus, residents and businesses, the Council has now decided to revert to a system where a fixed tariff per kWh is charged.
Consequently, consumers will now pay the same tariff per kWh, irrespective of consumption. This system will also ensure that residents with prepaid electricity meters will always receive the same number of units when they purchase electricity.
For businesses in the manufacturing sector relying on economies of scale, this is particularly good news, because the ridiculous block tariffs destroyed all economies of scale benefits with regard to electricity prices.
