There is a widespread perception that City Power and other municipal electricity distributors buy electricity from Eskom and then resell the electricity to domestic customers within their areas of supply with massive mark-ups and at significantly higher prices than would be the case if Eskom supplied such domestic customers directly. By CHRIS YELLAND.
While the domestic electricity prices of some municipal distributors may be higher than Eskom’s in some cases, a closer examination of the facts shows that this is certainly not always the case, and in particular in respect of the domestic electricity prices of City Power (Johannesburg) as compared to Eskom domestic electricity pricing nationally (including areas such as Soweto, Sandton and Midrand).
Recent social unrest in Soweto highlighted the danger of public misunderstanding of the price differences between Eskom’s prepaid and credit meter tariffs, and also between the domestic electricity tariffs of Eskom and City Power. The problem is that both Eskom tariffs and City Power tariffs are presented in such an unintelligible way that very few domestic customers are able understand them, let alone compare them in order to make rational conclusions and choices.
A previous article compared Eskom single phase domestic prepaid and credit meter…
Source : Daily Maverick