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"Power struggle" in Mossel Bay


Residents and business people of Mossel Bay have been called to a meeting on Tuesday to discuss recent adjustments to the town's elecricity billing process.

Organisors of the public forum have accused the Mossel Bay Municipality of introducing tariff hikes that could cost businesses as much as R2,500 a month more.

Disgruntled business people have described the new tariffs, announced in June for the new financial year, as ridicously high.

The meeting takes place at the old power station De Bakke at two pm on Tuesday.


The letter below was sent to customers in June.

Dear Customer
2012/2013 BUDGET: CHANGE IN ELECTRICITY TARIFF STRUCTURE FOR BUSINESSES
We herewith wish to inform you that in order to have a more equitable electricity tariff structure between Businesses using pre-paid and credit meters, Council has decided to also allow the electricity consumers using credit meters to be on the one-part tariff. Council thus decided on implementing the following with effect from 1 July 2012 when the 2012/2013 financial year commences:

" All business customers using a single phase electricity meter and using more than 1500kWh per month (based on an average usage taken over the past 4 months), will be placed on the one-part single phase business tariff which entails no payment of the monthly basic charge of R13.66 plus VAT per amp, but only the amount of R1.24 + VAT per kWh. Where less than 1500kWh is used the basic charge per amp will be payable but the cost per kWh will be only R0.73 + VAT

" All business customers using a Three phase electricity meter and using more than 3000kWh per month (based on an average usage taken over the past 4 months), will be placed on the one-part single phase business tariff which entails no payment of the monthly basic charge of R32.47 plus VAT per amp, but only the amount of R1.24 + VAT per kWh. Where less than 3000kWh is used the basic charge per amp will be payable but the cost per kWh will be only R0.73 + VAT

" Where businesses are not in use or very little electricity is used per month, the following options has been made available to reduce costs:
o The Meter can be changed to a single phase meter, or
o The amperes can be reduced. To assist businesses who are not currently operational or who can operate with fewer amperes, the cost for lowering the amps has been waived for the 2012/2013 financial year.

Yours faithfully



MUNICIPAL MANAGER