Electricity tariffs up from November 15 |05 November 2011

PUC’s chief executive Robert Stravens said the cost of the heavy oil the corporation uses has this year  gone up by 31% yet there has been only a 5% increase in August so the PUC has been absorbing  some of the cost but cannot sustainably continue doing so.

“We have used all our reserves and it is important for us to now see how we can restabilise our reserves,” he said.

Mr Stravens said the PUC has adopted a zero tolerance towards wastage and has moved its offices from Victoria to Malavois House making some savings, and the corporation is more strict with consumers who do not pay their bills.

“With the help of the government, we have used the R27 million which was in the Stabilisation Fund, but a point has been reached where we have to take action if we are to ensure our operations are not affected,” he said.

He said on average the increase is about 11%, meaning a consumer who has been paying R234 will now pay R265, but noted heavier users will pay more and there are those who will hardly see an increase “if their consumption is low because the increases are on the energy used aspect of the bills not the fixed charges.