GEORGE NEWS - Georgians will be coughing up a uniform 7.88% increase across all categories of the electricity tariff on their municipal bill as from 1 July for the 2026-2027 book year.
The increase was approved at a special council meeting on 31 March for categories including consumption (energy used), the availability charges as well as per Amp charges.
Cllr Monique Simmers (DA), delivering the mayoral address on behalf of Mayor Browen Johnson, said the municipality is absorbing some of the 9.01% bulk supply increase that Eskom has imposed on municipalities.
The mayor's engagement with the National Energy Regulator of South Africa (Nersa) to limit the impact of the rise had been unsuccessful, however, it was decided not to pass on the Eskom hike to the consumer in full. Simmers said the 7.88% is the lowest possible increase that can be managed without putting the municipality at financial risk. If no increase is implemented, residents will eventually “suffer through failing services, infrastructure breakdowns, and long-term financial instability”.
Free basic electricity for indigent households was increased from 70kWh to 80kWh per month, which is above the national standard of 50kWh, she said.
Good Cllr Roxaan Vorster welcomed the input obtained through the public participation process on the electricity increase - which her party at a previous council meeting had proposed should be done. She said however that her party does not support the increase. “George Municipality makes large profits from the sale of electricity. Little is spent on infrastructure maintenance.”
A graph from the CSIR report, Utility-scale power generation statistics in South Africa 2024 (1 January 2024 - 31 December 2024) to illustrate the increase in the price of electricity.
Cllr Sifiso Ntondini (ANC) also gave the increase a thumbs-down. “We are a municipality, not a business. We are not here to make a profit, but for service delivery.” He said businesses are closing and many people are suffering when losing their work in the current economy and this should be taken into account.
Cllr Marchell Kleynhans had a counterproposal: “Return the report [tabled to council], show the real impact, freeze availability charges, limit the increase to 5% and reopen true public participation.” He said the public participation process “had to be a voice for the people, but it became only a formality”.
According to the report tabled by the head of Electrotechnical Services, Michael Rhode, the Cost of Supply Study (CoS) for George Municipality determined that its revenue requirement was R1.2b for the 2024/2025 financial year. “This was escalated to R1.4b for 2026/2027, taking inflation, staffing costs, Eskom increases, etc. into account.”
Michael Rhode, head of Electrotechnical Services.
According to Rhode, when determining a percentage increase or decrease on the existing electricity tariffs, Council must keep the revenue requirement in view and “determine the level of surplus it requires to expand its electricity network to remain a viable entity and accommodate the growth of George”.
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