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PUBLIC NOTICE 3: ELECTRICAL TARIFFS (AMP LIMIT) – Amendment to Phase 3 Rollout of Power Limit Adjustment Project

Issued 4 July 2023

BACKGROUND INFORMATION
George Municipality embarked on a process to phase in a new electricity tariff structure last year on 1 July 2022 and which is in line with the National Energy Regulator of South Africa (NERSA) approved cost of supply study for George as well as the municipal Electricity Pricing Policy. The municipality has been effecting these changes in a variety of ways to limit the impact on our consumers as far as possible.

WHY THE AMENDMENT TO PHASE THREE ROLLOUT of Power Limit Adjustment Project?
The intention as communicated in April 2023 was to bill all consumers based on their installed capacity from the 1 July 2023. So,  for example, if you have an installed capacity of 60A prepaid meter on your premises,  you will be billed on 60A in line with the new tariff structure, unless you had already selected a capacity. However, the the economic challenges being faced by residents as a result of persistent loadshedding, higher interest rates and fuel prices have been taken into consideration and Phase Three has been changes as follows:

 

HOW PHASE THREE WILL WORK FROM 1 JULY 2023
All consumers who are currently being billed on 20A, but whose pre-paid meter is actually on a higher setting will be billed as follows from  1 July 2023:

  • Consumer with a 12-month average historic monthly consumption of above 400 units (kWh) and below 600 units (kWh), to be placed (billed) on 30A. (400 – 600 = 30A)
  • Consumer with a 12-month average historic monthly consumption of above 600 units (kWh), to be placed (billed) on a 40A. (>600 = 40A)
  • Indigents consumers are not impacted by this phase, as all indigent consumers are dealt with in line with the Indigent Policy.
  • All consumers who have already made their selections are not impacted.
  • All residential consumers will thus be moved to be on at least a 30A supply, except those who have chosen to be on 20A.
  • Commercial customers will be billed on actual capacity from July 2023 onwards. (This is maximum 80A on either single or three phase connection).

Key Reminders on the applicable Electrical Tariffs are:

  • Consumers are only allowed one capacity change per financial year; any additional changes would be subject to tariff for changes.
  • Small Domestic and Commercial tariffs (that is Prepaid and conventionally metered Consumers) are linked to the capacity limit of supply they choose.
  • Consumers who are willing to manage their loads within a capacity limited to 20 Amps Single Phase are offered a subsidised tariff with no fixed charges.
  • All Consumers who require more than 20 Amp capacity are charged a phased-in Cost Reflective Tariff with:
  • a Fixed Basic Charge,
  • a Capacity Charge depending on the capacity limit of the supply and
  • a lower Energy Charge.
  • Bulk consumers have all been moved to a Time of Use tariff.
  • Small Scale Energy Generators (SSEG) consumers are subject to fixed and Time of Use energy charges. Further information on understanding the potential electricity cost and management of loads, and how to decide about the capacity you can choose will be provided.

Bear this in mind when making your choice:

  • Capacity selection by the municipality based on the consumers historic consumption was for a financial break-even to reduce the impact on the customer and not necessarily to confirm the capacity required .
  • The Municipality cannot determine the optimal capacity required with the available meter data; therefore, consumers must determine what their energy and capacity requirements are.
  • The municipality has noted that customers are selecting the capacity as low as possible to reduce cost without understanding the implications. This is evident by the number of upgrades required once a selection is implemented. Please consider your selection carefully.
  • Account in arrears debt will be recovered from consumers through the pre-paid vending system.

Do you want to discuss your energy consumption and find out what the best Capacity will be for your needs, phone 044 801 9243, have your Municipal Account Number and Prepaid Meter Number handy OR email your query to elec.applications@george.gov.za