Cape Town - The City of Cape Town has published the small print in its cash-for-power plans and discrepancies between mayor Geordin Hill-Lewis’ initial promise of the amount to be paid to commercial customers have emerged.
Last month, the mayor said the National Energy Regulator of South Africa (Nersa) had approved a rate of 78.9c/kWh for this financial year for the City to pay power sellers and that the City would add a 25c/kWh incentive tariff on top of this.
However, the City has now said that commercial customers would be credited with 60.9c p/kWh (2022/23) plus 25c p/kWh incentive for each kWh fed into the City grid.
The discrepancy between the initial announcement and the figures announced this weekend are being blamed on the metering tariffs.
Mayco member for energy Beverley van Reenen on Saturday published a “how to take part in Cape Town’s cash-for-power initiative” list, in which it emerged that an additional Advance Metering Infrastructure (AMI) administration fee may also be applicable.
The City said this fee would cost approximately R12 850 and would be quoted as part of the authorisation process where applicable.
“The registration and authorisation process is free. However, some installers may charge customers to complete the registration process.”
Van Reenen said while the credit roll-out was immediate, the City would measure the amount of energy fed into the City grid and this would be reflected on the monthly municipal account. Commercial customers would be credited for each kWh fed into the City grid.
“Payments will only be made on amounts over R5 000 and on a monthly basis. Amounts of less than R5 000 will be held back until the total exceeds R5 000, and will then be paid.”
For residential consumers the cash-for-power deal will only be available later in 2023 and for now their deal remains the same as the initial offer that the City promised originally.
But Van Reenen said the City would be looking at how to bring the cost down for households.
Stop CoCT founder Sandra Dickson said: “The City lied about what it was going to pay commercial consumers for their extra power.
“At around R1 per unit to a feed-in plus installation fees, it will take decades to just break even, while the City profits from day one. The scheme is designed to maximise income for the City to minimise losses while still milking those that feed in.”
Meanwhile, one solar company said it had received 1 500 enquiries in the two weeks as Capetonians flock to solar, thanks to load-shedding and the City’s new cash-for-power programme.
Versofy Solar director Ross Mains-Sheard said his firm, headquartered in Johannesburg, recently opened a branch in Cape Town.
He said they were offering a range of solar solutions, including rent-to-own and solar subscriptions, ranging from an entry-level system priced at R1 999 a month.
“In January alone, Versofy received 1 500 enquiries, which were in no small part due to mayor Geordin Hill-Lewis’ announcement of his cash-for-power programme.”
mwangi.githahu@inl.co.za