The Freedom Front Plus (VF Plus) welcomes the decision by the Mogalakwena Local Municipality (Potgietersrus) to suspend the proposed increase of the basic electricity charge for domestic prepaid users from R100 to R200.
This step offers some relief to residents who are already under severe financial strain.
While this is a positive step, the solution should not be to try and recover the financial shortfall through other tariffs or levies. Electricity tariffs ought to be fair, transparent and determined in accordance with NERSA requirements, with proper public participation before any new tariffs are introduced.
The greatest cause for concern is the tariff structure imposed on agricultural consumers. In terms of the approved tariff schedule, certain farms are classified under the Industrial Low Voltage tariff. This classification includes a fixed service and administration charge of R4 385 per month in addition to network, capacity and other charges. Although the energy rate is R1,7517 per kWh, it comprises only a portion of the total utility bill.
There are also reports of consumers being classified according to codes that are not explained in the tariff schedule. This creates uncertainty as to why certain farmers are classified under an industrial tariff rather than a separate agricultural or domestic tariff.
Furthermore, several levies appear on bills – including additional charges and estate duties – but residents are not provided with sufficient explanations of what these entail.
This lack of transparency makes it nearly impossible for consumers to interpret or verify their bills.
Consequently, the Freedom Front Plus calls on Mogalakwena to urgently review the current tariff structure and its classification of agricultural consumers.
A comprehensive cost-of-supply and tariff review should be undertaken to ensure that tariffs reflect the actual cost of service delivery, without being unfairly detrimental to any group of consumers.
The Freedom Front Plus will keep seeing to it that residents are safeguarded against unfair tariffs, and that electricity tariffs are lawfully, transparently and accountably imposed.
