Latest news with #NERSA
The Citizen
a day ago
- Business
- The Citizen
Relief for residents as Ekurhuleni suspends fixed power tariff
City of Ekurhuleni executive mayor Nkosindiphile Xhakaza has announced the immediate suspension of the city's controversial fixed electricity tariff charge following community concerns and recent protests in Thembisa. The R126 (including VAT) fixed charge, introduced for the 2025/2026 financial year in line with National Energy Regulator of South Africa (NERSA) directives, was intended to support infrastructure maintenance and sustainable electricity supply. However, it sparked discontent among residents, leading to calls for its removal. READ: CoE corrects electricity tariff error, refund process in place Mayor Xhakaza confirmed that the suspension is pending urgent council endorsement and is intended to facilitate 'comprehensive, inclusive, and orderly engagement' with residents on the matter. The city has started preparations to implement the suspension within its billing system to ensure the immediate cessation of the fixed charge. The mayor emphasised the city's commitment to addressing legitimate community concerns while cautioning against violence and criminality during protests. 'The municipality remains fully committed to engaging robustly with residents regarding electricity tariffs and broader service delivery concerns; however, acts of violence, vandalism, and criminality will not be tolerated,' said Xhakaza. READ: 'Tired of empty promises': Residents protest over tariff hikes Avoiding another 2022 Thembisa scenario Xhakaza acknowledged the 2022 violent unrest in Thembisa, which led to significant financial losses, damage to infrastructure, and the tragic loss of life, noting that while many grievances were legitimate, the events were overshadowed by criminal activity. The suspension aims to prevent a repeat of such incidents while allowing structured discussions to address residents' concerns. Social relief measures rolled out In addition to suspending the fixed charge, the City of Ekurhuleni has rolled out a series of social relief measures in alignment with the commitments made during the 2025 State of the City Address. These include: Revised property value thresholds to enable more vulnerable households to access municipal support. A Debt Rehabilitation Scheme offering debt write-offs for qualifying over-indebted residents. Expanded indigent support to broaden access to free basic services for more residents in financial distress. Waivers of service connection charges for residents affected by cable theft. A three-month tampering charges waiver (July to September 2025) to allow residents to regularise municipal connections without penalties. READ: Thembisa residents reject new electricity tariffs, demand action 'These interventions reflect our commitment to social justice, equitable service delivery, and meaningful support for our residents, particularly those most impacted by prevailing economic conditions,' Xhakaza said. Call for calm and participation The city has called on residents to remain calm and to engage peacefully during the upcoming consultations, reaffirming its commitment to transparent and accountable leadership while working towards a fair and sustainable solution for all residents of Ekurhuleni. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
eNCA
2 days ago
- Politics
- eNCA
Ekurhuleni mayor temporarily suspends Thembisa electricity hike
THEMBISA - Ekurhuleni mayor Nkosindiphile Xhakaza has temporarily suspended the Thembisa electricity hike. This comes after the community protested over a R126 tariff hike. Xhakaza says they will also communicate with NERSA and, within 14 days, present the outcome to the community. "We do not want to carry a risk that [this decision will have in] impacting the city's financial sustainability. We want to look at what the mechanisms are available and how do we best position our people," he said. Thembisa came to a complete shutdown on Monday morning when residents hit the streets over electricity tariff hikes. The protest began around 5am with roads being barricaded with burning tires. It was not long before things escalated.
Eyewitness News
2 days ago
- Politics
- Eyewitness News
After violent protests, Ekurhuleni Mayor Xhakaza temporarily suspends fixed electricity charge
THEMBISA - Ekurhuleni Mayor Doctor Xhakaza has temporarily suspended a controversial fixed electricity charge after protesting on Monday morning. Xhakaza made the announcement to an angry crowd of Thembisa residents, who met his address with jeers and boos. The move follows a day of violent unrest, with hundreds of people taking to the streets to protest soaring power tariffs. ALSO READ: • At least a dozen Tembisa residents injured in running battles with Ekurhuleni police • Two police vehicles damaged during Tembisa protest Police fired rubber bullets to clear blockades, while residents retaliated by damaging vehicles, torching tyres and hurling stones. The R126 fixed charge will be put on hold until the city returns with a more permanent answer in 14 days. The day began with flames, rubber bullets and rocks, as residents blocked roads and police responded with force, leaving at least a dozen people injured. By midday, the crowd shifted to the Rabasotho Community Hall, waiting for Mayor Xhakaza to explain the way forward. When he finally arrived, the welcome was hostile, but the hundreds of residents present still listened as he announced a concession. The R126 fixed electricity charge, which was at the heart of the unrest, would be suspended with immediate effect. "So, we can go ahead and engage Eskom and NERSA so that this tariff structure can be understandable, but in the meantime, we will suspend the fixed charge temporarily of R126." Xhakaza told residents the municipality would return in two weeks with a final plan, after further discussions with stakeholders.
The Citizen
12-07-2025
- Business
- The Citizen
AbaQulusi residents outraged by sharp electricity tariff hikes
AbaQulusi residents have expressed their frustration and anger on Facebook since bearing the brunt of the increased electricity tariffs, which came into effect on July 1. Especially consumers who use prepaid meters have seen a sharp price hike, leaving them feeling concerned about their financial state. The increases form part of the municipality's 2025/26 budget implementation, but residents say there was little to no meaningful public engagement during the IDP roadshows, when the tariff hikes were proposed. 'We always buy R800 and used to get 299 units. Today, however, we only got 186 units for R800. It's ridiculous!' exclaimed one affected resident on the Vryheid Herald's Facebook page. These tariff hikes come after the National Energy Regulator of South Africa (NERSA) approved Eskom's price increases, which municipalities pass on to consumers. However, residents argue that AbaQulusi's service delivery failures – frequent outages, poor communication and ageing infrastructure – make the increases unacceptable. Another resident said, 'We would understand if they were charging us these exorbitant amounts for stable electricity supply, but they are charging us for electricity that is unstable.' In the Adopted Annual Budget, the municipality refers to the major challenge they are facing, namely vandalism, which has a negative impact on electrical infrastructure. 'This not only affects service delivery, as services become unavailable immediately after infrastructure has been vandalised, but it's also expensive to repair and replace.' Even though electricity is more expensive (according to the adopted municipal budget, which is available on their website), the real cost is much higher than consumers are being charged now. The 2025/26 Adopted Annual Budget and Medium-Term Revenue & Expenditure Framework (MTREF) reveal that the municipality is under financial pressure to keep the Electricity Department running. Despite a price hike of 11.32% in bulk electricity from Eskom, AbaQulusi is still not charging enough to fully cover costs. A 'Cost of Supply' study shows that to run the electricity section efficiently and keep up with Eskom's electricity increases, tariffs should ideally increase by 51%. But the municipality says that such an increase would be unaffordable for residents. Instead, the municipality has implemented the following tariff increases: • A 25% rise for residential users (prepaid and conventional) • A 15% rise for other consumers like businesses For the past three years, electricity sales have not brought in enough money to pay Eskom. As a result, other municipal funds have been used to subsidise the Electricity Department. Making matters more difficult is the fact that municipalities owing Eskom money, including AbaQulusi, are now required to include repayment plans in their annual budgets. NERSA has confirmed that it will only approve tariff applications based on 'Cost of Supply' studies that were submitted by municipalities. This means that tariffs are probably going to increase over the next few years. The municipality also implemented a 'High Season' tariff in the winter months of June, July and August, since Eskom charges municipalities more during this period. The current challenge is also that domestic consumers are being undercharged for electricity, while businesses and other consumers are being overcharged. According to the adopted budget, for consumers who use a prepaid meter, electricity is now charged using two pricing blocks instead of the previous four. This means that if you buy up to 350kWh in a month, you'll pay a lower rate (Block 1). If you buy more than 350 kWh in total during that month, the extra units will cost more per unit (Block 2). The system will keep track of how many units you have bought in that same month. This means that even if you buy electricity in smaller amounts, the total for the month is the same. Once you go over 350 kWh, consumers will pay the higher rate. Domestic prepaid electricity users (excluding the indigent) will have to pay a fixed monthly service fee, as well as higher rates during winter months. According to the municipality's adopted 2025/26 budget, this applies to households with single-phase prepaid connections between 30 and 60 amps, which are common in most homes. All prepaid consumers will pay a monthly service fee of R25. Domestic consumers (excluding the indigent) will pay R2.55 per kwh for the first 350 kWh purchased and thereafter R2.72 per kWh. During the Eskom high season (June to August), electricity will cost more: • R3.74 per unit for the first 350 kWh you use in a month. • R4.16 per unit for any units above 350 kWh. If you use a conventional (monthly billed) meter: Conventional consumers will pay a monthly service charge of R224 (excluding three phase consumers, who will pay a service charge of R1300 a month). • For the first 350 kWh used in the month, you'll pay R2.72 per unit. • After that, every extra unit costs R3.79. In Eskom's high season (June to August): • The first 350 kWh will be R3.35 per unit; • Over 350 kWh will be R4.12 per unit. The Vryheid Herald has requested a proper breakdown of the new tariffs, since consumers are complaining and confused. Unfortunately, this information from the municipality had not been received at the time of going to print. ALSO READ: Municipality warns residents to avoid scammer posing as disconnection official The news provided to you in this link comes to you from the editorial staff of the Vryheid Herald, a sold newspaper distributed in the Vryheid area. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
10-07-2025
- Business
- The Citizen
What Ekurhuleni residents need to know about new electricity tariffs
The electricity tariff structure is regulated by the National Energy Regulator of South Africa (NERSA), requiring municipalities to review tariffs annually and conduct a Cost of Supply (CoS) study every five years. 'The latest tariff adjustments are in line with these requirements and reflect the findings of Ekurhuleni's most recent CoS study,' said CoE spokesperson Zweli Dlamini. Two main tariff options for residents For residential customers, the City offers two main tariff structures: 1. Tariff A: Inclined Block Tariff (IBT) This is split into two categories: Category A1 (Approved Indigent and Deemed Indigent Households): Best suited for low-consumption households. Customers receive 50kWh of free basic electricity (FBE) per month . No basic monthly charge applies. Category A2 (Non-Indigent, Low Consumption Customers): Does not include free basic electricity. A basic monthly charge will apply for the 2025/26 financial year: Single-phase supply: R109.78 per month Three-phase supply: R203.89 per month The City explained that this basic charge assists in recovering the costs of distributing electricity, maintaining infrastructure, and ensuring ongoing repairs. 2. Tariff B: Residential This option is suitable for medium to high consumption households and has been in place since 2018. It also includes a monthly basic charge: Single-phase supply: R109.78 per month Three-phase supply: R203.89 per month Residents encouraged to apply for indigent support Customers can choose the tariff option that best suits their consumption patterns but are required to remain on the selected tariff for a minimum of 12 months before switching. The City urged qualifying residents to apply for the indigent social package to benefit from subsidies and free basic electricity under Category A1. Keeping increases reasonable while ensuring reliability 'In setting tariffs for the new financial year, the City considered all factors within its control and aimed to keep increases reasonable and affordable while ensuring a continued and reliable electricity supply to residents.' 'We remain committed to transparency, regulatory compliance, and serving the best interests of our community,' said Dlamini. For further details on the City's electricity tariffs, residents are encouraged to visit the City of Ekurhuleni's official website or contact their nearest customer care centre.
