Local Government, Environmental Affairs and Development Planning
- What is the detailed information of the amount levied by each municipality in the province for fixed basic charges for electricity;
- whether such increases are in line with inflation; if not, what are the relevant details?
4.(1) The following table provides a breakdown of the amounts levied for fixed basic charges on electricity, by each Municipality in the Province, for the last two financial years. It also shows the percentage change year-on-year.
Municipality | Basic charge for electricity including VAT (R’) | |||
2022/23 | 2023/24 | Percentage Increase for 2023/24 | Meter Type | |
City of Cape Town | 212.75 | 252.09 | 18.49% | Not specified |
Matzikama | 342.33 | 394.02 | 15.10% | Conventional and Prepaid |
Cederberg | 428.71 | 493.44 | 15.10% | Conventional |
Cederberg | 68.04 | 78.31 | 15.10% | Prepaid |
Bergrivier | 0.00 | 0.00 | 0% |
|
Saldanha Bay | 0.00 | 163.07 | 15.10% | Not specified |
Swartland | 308.33 | 365.34 | 18.49% | Not specified |
Witzenberg | 0.00 | 0.00 | 0% |
|
Drakenstein | 265.65 | 291.69 | 9.80% | Conventional and Prepaid |
Stellenbosch | 186.20 | 214.32 | 15.10% | Prepaid |
Stellenbosch | 229.69 | 264.37 | 15.10% | Conventional |
Breede Valley | 366.07 | 420.98 | 15.10% | Conventional and Prepaid |
Langeberg | 293.25 | 336.95 | 15.10% | Conventional |
Theewaterskloof | 90.78 | 208.93 | 130,15% | Conventional |
Theewaterskloof | 141.57 | 244.41 | 72,65% | Prepaid |
Overstrand | 504.46 | 580.64 | 15.10% | Conventional and Prepaid |
Cape Agulhas | 0.00 | 0.00 | 0% | Not specified |
Swellendam | 134.10 | 177.48 | 32.35% | Prepaid |
Swellendam | 215.24 | 284.90 | 32.36% | Conventional |
Kannaland | 80.50 | 80.50 | 0% | Conventional |
Hessequa | 322.58 | 360.53 | 11.76% | Conventional |
Hessequa | 156.66 | 180.26 | 15.06% | Prepaid |
Mossel Bay | 457.02 | 217.20 | -52.47% | Not specified |
George | 74.63 | 85.64 | 14.75% | Not specified |
Oudtshoorn | 58.15 | 67.45 | 16% | Prepaid |
Oudtshoorn | 58.15 | 67.45 | 16% | Conventional |
Bitou | 357.94 | 412.00 | 15.10% | Conventional |
Knysna | 105.30 | 121.20 | 15.10% | Prepaid |
Knysna | 171.22 | 197.08 | 15.10% | Conventional |
Laingsburg | 230.31 | 265.09 | 15.10% | Not specified |
Prince Albert | 557.04 | 646.20 | 16% | Not specified |
Beaufort West | 228.88 | 263.44 | 15.10% | Conventional and Prepaid |
Source: Provincial Treasury
4.(2) The increases are influenced by various factors. Municipal fixed charges are standard costs paid by consumers for the use/consumption of a municipal service.
Regardless of the quality or quantity of the service being consumed, these fees do not fluctuate. Fixed charges are a common way for municipalities to pay for the overhead and fixed expenses involved in providing and maintaining basic services. Fixed charges differ notably from variable charges; variable charges fluctuates according to the quantity of the service being consumed.
Fixed charges are impacted by a wide array of variables which can include, but are not limited to, operational expenses, infrastructure costs, cross-subsidisation, reserve planning, debt servicing costs, seasonal variations etc. The specific combination and weight of these factors can vary greatly depending on the municipality's unique circumstances, priorities, and the services being provided.
Most municipalities therefore make use of a differentiated approach whereby they introduce a range of fixed charges for different types of consumer profiles.
As these profiles and consumption patterns differ for each municipality, fixed charges are not strictly comparable across municipalities. Fixed charges for each municipality can be found in a municipality’s tariff book/policy as approved/reviewed by a Municipality together with the main budget in May of each year.
