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Legal battle over an extra R0.24c the City of Cape Town charges on electricity

Stop City of Cape Town is trying to pull the🔌on the City of Cape Town's "extra revenue"

Activist group Stop City of Cape Town is planning to take the City to court over electricity tariffs.

Earlier this year, the National Energy Regulator of South Africa gave the City the green light to increase electricity tariffs to R1,52 a unit. But the city is charging R1.76.

The group’s founder Sandra Dickson said the city was charging an additional 24 cents unlike other municipalities.

‘We found that most metro municipalities implemented the approved tariffs by Nersa, whereas the city added more across all the blocks.”

“The city is transferring 10 percent of the electricity revenue to the rates account and then after they have given 10 percent away, they come back to the public and say they’ve got too little money, they need another levy to cover their costs. The question from the consumer’s side is clearly how can you give 10 percent away and then come back to the public and ask for it again, ” added Sandra Dickson.

However, City’s Kadri Nassiep said there was nothing illegal or irregular about the electricity tariffs.

He said the additional 24 cents is used, in part, to power street lights. He maintained the city did not generate any profit from the tariffs.

“We are the first to recognise I think the plight of our consumers and the impact of these price shocks … the Eskom increases of the past decade have resulted in the burden on the economy and the pockets of our consumers,” said Nassieo

Dickson said the group is seeking advice from various legal entities before heading to court.

Back in August, an online petition started by Kevin Alexander calling for reduced electricity tariffs in the Cape garnered 5000 signatures in support of the cause.

The petition was addressed to Western Cape Premier Alan Winde and demanded that the electricity tariff be reduced with immediate effect.

An nationwide electricity tariff increase (ranging from 8-13%) came into effect in early July, forcing consumers to dig deep.

More: ENCA

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