George Municipality hereby confirms that it is in process of implementing the new electrical tariff structure as approved by Council. We have become aware that certain consumers are refusing municipal officials and our sub-contractor’s access to their homes due to either safety concerns or not being aware of the process underway.
The Municipality requires access in order to implement the required adjustments to the installed capacity on pre-paid meters, as required by the new tariff structure. The adjustments take the form of a setting being changed on the Prepayment meter itself, to either adjust the installed capacity to the default capacity as selected by the municipality or to adjust to the capacity as selected by the consumer.
This letter gives mandate to the Municipal officials/ONTEC and their contractors and sub-contractors to take the required action. The mandate of the George Municipality to set the capacity of your pre-paid meter is vested in the following legislation, policy and approvals.
1. The application of cost reflective tariffs is mandated in the Municipal Systems Act Section 74 as shown below.
(d) tariffs must reflect the costs reasonably associated with rendering the service, including capital, operating, maintenance, administration and replacement costs and interest charges:
2. The National Electricity Pricing Policy of South Africa (EPP) stipulates the application of capacity limits on supplies as shown below.
Policy Position: 36
Domestic tariffs to become more cost-reflective, offering a suit of supply options with progressive capacity-differentiated tariffs and connection fees:
- At the one end a single energy rate tariff with no basic charge, limited to 20 Amps and nominal connection charge (details under section on cross-subsidies);
- At the next level a tariff which could contain tariff charges to reflect a basic charge, customer service charge, capacity charge and energy charge with cost-reflective connection charges; and
- At the final level TOU tariffs must be instituted on the same basis as above, but with the TOU energy rates.
3. George Council approved the electricity tariffs as proposed in the budget in June 2022 and which were a part of the public participation process as shown below.
Domestic Consumers: 1 or 3 phase. Capacity exceeding 20 Amps single phase
Basic Charge : R74,63 per month
Capacity Charge : R4,50 per Amp per phase per month
Energy Charge : 208,49 cents per KWh
4. The National Energy Regulator of South Africa (NERSA) approved the electricity tariffs for George Municipality, involving the capacity limits as being applied as shown below.
• Domestic Single Phase – 1 Part Prepaid (20 Amps)
Energy Charge: 239.62c/kWh
• Domestic Consumers: 1 or 3 phase. Capacity exceeding 20 Amps single phase
Basic Charge : R74,63 per month
Capacity Charge : R4,50 per Amp per phase per month
Energy Charge : 208,49 cents per KWh
The implementation plan was also discussed with NERSA in detail, and they endorsed such plan which involved allowing consumers to select their capacity or the selection of an appropriate capacity by the municipality in case of consumers failing to do so. Consumers have been informed of the new electrical tariffs and the decisions that they need to take, as well as the implications of capacity limits.
Refusing access to municipal mandated officials to set the selected capacity will have consequences. Please note that all municipal and/or Ontec officials carry identification cards with a photograph and their ID number as well as a copy of this letter. Phone this number 044 873 5474 during work hours to verify that the officials at your home form part of this project.
The following options are available to the customers:
• Change their decision and allow access for the capacity to be set on their pre-paid meter.
• Select the capacity needed in the approved form and allow access to the personnel to set the capacity.
• Sign a form indicating they want a change in capacity and thus will pay the associated basic charge and capacity charge. (60 Amps).
• Refuse to allow access or signing of selection form in which case the supply will be disconnected.
Please direct any queries to 044 801 9243 or email your query to elec.applications@george.gov.za
