Mpofana Key issues Process of upgrading the network and the - - PDF document

NERSA PUBLIC HEARING

Mpofana

Key issues

Process of upgrading the network and the substation

to cater for higher capacity or customer demand

Increase that Eskom has applied is to be transferred

to consumers

Need to improve infrastructure No capacity to implement the inclining block method

in current year as this method required statistical data and systems to be set up

Key issues

New tariff for indigent customers from 64 cents to 74

cents per KW which is 16 % increase therefore the increase will not disadvantage the poor.

Capital investment of R 3 million to reduce

distribution losses through procurement of transformers

Provision of free basic electricity to domestic

households at a cost of R 1 698 000 ( first 50 KW)

Equitable share not sufficient as the level of

indigence is high

Key issues

The proposal is for the year while we gear for

compliance of the Regulators restrictions.

The income of the municipality is rates and

electricity while households <R75 000 do not pay rates and majority of households <R 75000 will be

• n prepaid meters.

Maintenance costs associated with the network are

above what we can finance through normal

• perations( cost of electrical engineer)

Commercial sector which takes on avg. 64000 mega

watts per annum( Textile sector)

Thank you