In approving the hike, Nersa said municipalities would have to apply for special permission if they wanted the tariffs to be increased any further, IOL reports.
The tariff hike follows the 9,4% increase Nersa granted to Eskom earlier this year – which came into effect at the beginning of the month, as well as the 7,8% increase in the price of bulk electricity sold to municipalities.
According to the report, the increase granted to municipalities was lower than the one granted to Eskom because municipal operating costs are generally lower than those of Eskom.
Municipalities spend around 75% of business input costs on buying electricity from Eskom.
Meanwhile, the City of Cape Town has announced plans to migrate prepaid customers who own properties with a value that exceeds R1 million from the LifeLine tariff to the Domestic tariff rates.
Going forward, only prepaid customers whose properties are valued at under R300 000 or consumers who use less than 450KW/h will qualify for the cheaper tariff rate.
Here are a few tips from Eskom on how to save electricity this winter:
- Install ceiling insulation. It’s the most important step to improve the energy efficiency of your home, making it up to 5% warmer in winter. Up to 40% of heat can be lost through your roof if your home is not insulated.
- Install energy- and water-saving showerheads. This reduces the amount of hot water and electricity you use.
- Replace all your old incandescent lights with energy-efficient compact fluorescent lamps (CFLs) and light-emitting diodes (LED).
- Replace your conventional oven with an energy-efficient convection oven or install an induction stove.
- Replace your electric geyser with a solar water-heating system or heat pump. Water heating can account for up to half of your monthly energy costs, while solar energy can help you reduce costs by up to 24%