New tariffs for utilities in force |17 May 2012

PUC clients will notice that the bills they will receive as from that date is being charged at the new rate which reflects the 15% hike.

However, PUC has clarified that once clients go down to its outlets to settle their bills, the amount billed will be adjusted taking into account the amount consumed before May 15 when the old tariff was in force.

The new tariff has been spread in such a way that the smaller consumers who make up 40% of PUC clients benefit the most. Consumers using up to 200 kilowatts per month will pay only R40 more.

PUC has had no other choice but to adjust its tariff following the increase in fuel prices. As was explained by the Minister for Environment and Energy to the National Assembly, crude oil has increased from US $100 a barrel in October last year to reach US $120 a barrel.

Wingate Mondon, PUC’s financial controller, has explained that final calculations will be done by taking into account the date on which the bill was read and adjusted accordingly.

For example, a consumer falling in the 200 unit range, will now be paying R1.50 for each unit of electricity consumed instead of R1.30 as was the case previously, thus incurring an increase of 20 cents for every unit consumed.

So for the month of May when the bill comes, the consumer will be charged R1.50 for each unit consumed but when he or she goes to settle the bill, PUC will adjust it accordingly taking into account the amount consumed before May 15 which must be calculated on the old rate of R1.30.

“We will rework the bills on a pro-rata of part R1.30 and part R1.50. Then we will credit that person’s account with the new total which he or she can request for when settling their bills or if they choose to pay the whole amount, the credit will be deducted from the June bill,” he said.

PUC is encouraging its clients to settle their bills within the 30 days when bills are first issued to avoid disconnection.

“PUC also has its financial commitments that it must meet to be able to offer these services to the public. It is difficult when people ask us to allow them to pay by installment as we also have our own budgetary constraints and we need to make enough money to meet our targets,” he said.