An investigation by the Freedom Front Plus (VF Plus) revealed that Rand West City Local Municipality (Randfontein and Westonaria) is failing to pass the higher winter electricity tariffs charged by Eskom on to consumers.
The Municipality simply cannot afford to absorb these additional costs and will have to adjust its billing system to make provision for them.
The Freedom Front Plus’s investigation revealed that Eskom applies three different tariffs to bill the Municipality for electricity consumption during the winter months (June, July and August): peak, standard and off-peak. The Municipality, however, uses only one tariff to bill consumers, meaning the higher winter rates are not passed on.
This under-collection means the Municipality is losing millions, which severely constrains its cash flow.
Eskom’s bill for June, July and August usually averages around R140 million per month, while it amounts to about R70 million, on average, for the rest of the year.
Following a recommendation by the Freedom Front Plus, the Municipality agreed to establish a committee to urgently look into the issue.
The party has already met several times with the Mayor’s advisor, Chris Stoffels, as well as the Finance Department, to present and explain the findings.
The Freedom Front Plus believes that if the committee could find a solution, it would not only benefit consumers, but also enable the Municipality to pay its Eskom debt more regularly and ultimately deliver better services to residents.
