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Almost R300-million saved for residents and businesses in the city

ELECTRICITY customers in Nelson Mandela Bay will this year collectively save R296 336 000, thanks to an earlier decision to reject additional electricity charges.

The National Energy Regulator (Nersa) rejected Eskom's application to raise the price of electricity following public hearings in June, which was attended by a delegation representing the Nelson Mandela Bay Business Chamber.

In a recent presentation to the Nelson Mandela Bay Business Chamber Board, one of the delegation members, Strategic Resources task team chair Angus Clark, calculated the amount in savings for the city’s customers, based on the metro’s annual electricity sales and Eskom’s proposed initial full increase of 25.3%.

“Business as a whole is appreciative of Nersa’s decision to reject Eskom’s request for additional funding and keeping Eskom’s increase to 14.24%,” Clark said.

Not only will residential customers, feeling the pinch of the current economic downturn, experience some relief, but it could mean the difference between keeping the doors open for some companies in the city.

The approximate electricity saving per category of business amounts to:

  • Large business saving R3.3-million per year
  • Medium business saving R157 000 per year
  • Small Business saving R15 720 per year

Clark calculated the total household saving on average per home or family to be R2 358 per year.
The Nelson Mandela Bay Business Chamber is leading the way in the country in terms of challenging uncompetitive electricity tariffs, with High Energy User Group champion David Mertens in August representing the Business Chamber’s interest at another Nersa public hearing on the Cost of Supply (COS) Framework.

Safeguarding the interest of business from uncompetitive electricity prices, we were the only business organisation of its kind to present at the August hearing.

During his presentation Mertens stressed that the winter tariffs for businesses in Nelson Mandela Bay were detrimental to industry. Some businesses in the city have recently reported to be down on their knees – facing possible closure – due to the unaffordability of electricity tariffs during the winter months.