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Which cities charge the most for electricity?

File Cartoon
File Cartoon

An exhaustive study by independent energy expert‚ Chris Yelland‚ has found that Johannesburg and Cape Town have the most costly electricity tarrifs in the country.

The results of Yelland’s study‚ published online by ee publishers‚ were that Johannesburg’s credit meters charged the most for power to “low consumption” users (up to 750kWh per month).

But‚ he also found that Joburg’s prepaid meters offered the best price in the country.

Cape Town was most expensive for medium domestic users (1000 – 2000 kWh per month) with the Joburg prepaid meter coming out cheapest again in this category.

Cape Town was also the most expensive for high consumption domestic users (2000 – 4000 kWh per month) with the Joburg prepaid meter again coming out cheapest.

Yelland said that eThekwini offered a very low “lifeline supply tariff” to users of up to 150kWh a month. “However it is not really fair to compare this with the limited capacity supplies of other distributors‚ which are available somewhat more generally to low-income‚ low-consumption customers in shacks or townships.

In ascending order‚ other low-cost‚ limited-capacity supplies are offered by:

- Nelson Mandela Bay (up to about 450 kWh per month)‚

 - Ekurhuleni (up to about 750 kWh per month) and

 - Eskom (up to the full capacity of a 20 A prepayment meter).

 - Cape Town offers a medium-priced limited-capacity supply up to 350 kWh per month‚ rising sharply thereafter for higher consumption up to 450 kWh per month.

 - Tshwane provides the highest pricing of the limited-capacity supplies‚ over the full range from 0 – 1000 kWh per month.

Yelland said: “Domestic electricity customers have no choice as to who supplies them with electricity‚ because all electricity distributors – Eskom and municipal – are geographic monopolies. It is therefore important that electricity pricing between distributors should be equitable‚ rational and non-discriminatory.“

But‚ he added that “the reality” was that municipalities offered “different service levels and cost structures” to different consumers. “In addition‚ municipalities have different mixes of domestic‚ commercial and industrial customers embedded within their geographic areas of supply.”

 

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