An attempt to overcharge Buffalo City Metro ratepayers by R16-million in electricity tariffs was abandoned at a city council meeting yesterday.
In August, a Daily Dispatch exposé of council’s attempt to overcharge 165000 ratepayers by 13% more than the officially sanctioned rate drew outrage from ratepayers.
BCM raised the rate of electricity tariffs by 8.5% despite the National Energy Regulator of South Africa (Nersa) having ruled they could only raise it by 7.39%, a difference of 1.11 percentage points.
Yesterday, the council adopted a resolution to pay back residents overbilled at the start of the current financial year in July.
Yesterday, the councillor behind the move to defy Nersa, finance portfolio chairman and mayoral committee member, alderman John Badenhorst, said: “The emotion created made people think they will get an enormous amount , but it will only be between R15 and R40.”
However, he also said a large home could expect to be repaid R30 to R40.
Badenhorst said credit meter users would have an “adjustment included in their next account”, and those who bought prepaid electricity from BCM would receive extra electricity to the value of the money owed to them by BCM.
In a report signed by mayor Zukiswa Ncitha, budget cuts of R10-million were made in the operating budget to “Buffalo City Tourism” (R5-million), the heritage burial project (R800000), Saimsa games (R3-million), Municipal Public Accounts Committee (R400000) and the establishment of an integrated call centre (R800000).
In August, Badenhorst claimed the extra electricity sale money would be ring-fenced to replace aging high-voltage electricity lines in BCM.
At yesterday’s council meeting, Badenhorst also berated ratepayers who did not receive their monthly bills and did not make a payment. He called them “irresponsible”.
The Dispatch reported that BCM lost three days in preparing the accounts, and then sent them, via a service provider, to the strike-hit post office where they were trapped.
Badenhorst told the council that ratepayers “know that their bills only vary by R5 to R10”, and said those who did not receive their bills and did not make a payment to BCM “will find their lights cut off”.
He compared the situation to a ratepayer who had an “Edgars account” who would still make a payment even if the monthly account did not arrive.
Badenhorst claimed that: “This metro is doing incredibly well on delivery in all directions.”
However, DA councillor Derek Green said the impact of over-billing on the poor was catastrophic, and some consumers became so stressed by high bills that “they get heart attacks”.
“Timeous delivery of statements is very important so that people can pay them when they have the money.” — mikel@dispatch.co.za
BCM set to pay back residents overbilled for electricity tariffs
In August, a Daily Dispatch exposé of council’s attempt to overcharge 165000 ratepayers by 13% more than the officially sanctioned rate drew outrage from ratepayers.
BCM raised the rate of electricity tariffs by 8.5% despite the National Energy Regulator of South Africa (Nersa) having ruled they could only raise it by 7.39%, a difference of 1.11 percentage points.
Yesterday, the council adopted a resolution to pay back residents overbilled at the start of the current financial year in July.
Yesterday, the councillor behind the move to defy Nersa, finance portfolio chairman and mayoral committee member, alderman John Badenhorst, said: “The emotion created made people think they will get an enormous amount , but it will only be between R15 and R40.”
However, he also said a large home could expect to be repaid R30 to R40.
Badenhorst said credit meter users would have an “adjustment included in their next account”, and those who bought prepaid electricity from BCM would receive extra electricity to the value of the money owed to them by BCM.
In a report signed by mayor Zukiswa Ncitha, budget cuts of R10-million were made in the operating budget to “Buffalo City Tourism” (R5-million), the heritage burial project (R800000), Saimsa games (R3-million), Municipal Public Accounts Committee (R400000) and the establishment of an integrated call centre (R800000).
In August, Badenhorst claimed the extra electricity sale money would be ring-fenced to replace aging high-voltage electricity lines in BCM.
At yesterday’s council meeting, Badenhorst also berated ratepayers who did not receive their monthly bills and did not make a payment. He called them “irresponsible”.
The Dispatch reported that BCM lost three days in preparing the accounts, and then sent them, via a service provider, to the strike-hit post office where they were trapped.
Badenhorst told the council that ratepayers “know that their bills only vary by R5 to R10”, and said those who did not receive their bills and did not make a payment to BCM “will find their lights cut off”.
He compared the situation to a ratepayer who had an “Edgars account” who would still make a payment even if the monthly account did not arrive.
Badenhorst claimed that: “This metro is doing incredibly well on delivery in all directions.”
However, DA councillor Derek Green said the impact of over-billing on the poor was catastrophic, and some consumers became so stressed by high bills that “they get heart attacks”.
“Timeous delivery of statements is very important so that people can pay them when they have the money.” — mikel@dispatch.co.za
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