TARIFF SCHEDULE FOR THE 2014/2015 FINANCIAL YEAR

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1 TARIFF SCHEDULE FOR THE 2014/2015 FINANCIAL YEAR

2 MBOMBELA LOCAL MUNICIPALITY CHARGES FOR ELECTRICITY Mbombela Local Municipality hereby gives notice in terms of Section 75A of the Local Government Municipal Systems Act, 32 of 2000 (as amended), that the following tariffs, fees and charges applicable to the Electricity Supply By-laws, have been determined and accepted with an unanimous decision by Council under Item A(2) during a Special Council meeting held on 9 June The determinations shall come into effect on 1 July 2014: TARIFF OF CHARGES 1. FIXED CHARGE (RHINO TARIFF) The owner or occupier of an erf, stand, lot or other area, with or without improvements, who did not conclude an agreement with the Municipality for the supplying of electricity, but in the opinion of the Municipality can be connected to the main electricity supply, shall pay to the Municipality a fixed charge of R per month in respect of each such erf, stand, lot or other area. Provided that No basic charges will be payable on an erf, stand, lot or other area purchased from the Municipality on condition that the stand must be consolidated with an adjoining property or properties. 2. COMMERCIAL CONSUMERS (ELEPHANT TARIFF) (b) The charges payable for the supply of electricity to temporary consumers, for temporary purposes shall be determined by the Municipal Electrical Engineer. The supply of electricity to a temporary consumer will only be valid for the duration of 30 days, after which a re-application should be lodged to the Municipality. (c) The fixed charge per month shall be R and energy charge shall be c per kwh. 3. DOMESTIC CONSUMERS (INCLUDING CLUBS, RELIGIOUS INSTITUTIONS USED EXCLUSIVELY FOR WORSHIP AND SIMILAR NON PROFIT INSTITUTIONS) 3.1 This tariff shall apply to the following: (b) (c) (d) Dwellings used exclusively for domestic purposes; Flats which are separately metered and which are exclusively used for long term occupation for domestic purposes; Homes separately metered for benevolent institutions; Pumping apparatus where the water pumped is used exclusively for domestic purposes on sites receiving supply in terms of this tariff scale;

3 (e) (f) (g) (h) A building or a separate portion of a building which is used exclusively for long term occupation for domestic purposes and the domestic unit/s is/are separately metered; Town houses which are separately metered and which are exclusively used for long term occupation for domestic purposes Guest houses as defined by the Guest House Association and in accordance with the Policy on Guest Houses as defined in MLM s Town Planning Scheme. Clubs with supply up to 60Amps The following charges are payable: Description Hippo charge Up to 60 A current limit single or three phase Basic/Fixed Charge per Month R00.00 Energy rate(c/kwh)(<=50kwh) 74.00c Energy rate (c/kwh) (51-300kWh) 95.53c Energy rate(c/kwh) ( kWh) c Energy rate (c/kwh) (>600kWh) c Provided that: (b) (c) With the exception of residential flats, if the demand of a consumer is too high to qualify as a domestic consumer, such consumer shall be classified as a bulk consumer. The applicant submits a written application to the Municipal Electrical Engineer motivating the reason for increasing the supply from 60Amp to 80Amp current limit single or three phase connection. The MEE may approve or reject the application. All costs involved in the connection of an 80Amp current limit three phase be paid by the applicant. 3.2 INDIGENT (Domestic). The following tariff shall apply to residential (domestic) indigent customers, registered in the municipal indigent register in accordance with the Indigent Policy Description Charge Charge (Municipal vendors: +5% surcharge) Basic/Fixed Charge per month R0.00 R0.00 Energy rate(c/kwh)( -50kWh) 68.00c 71.40c Energy rate (c/kwh) (51-300kWh) 95.53c c Energy rate (c/kwh) ( kWh) c c Energy rate(c/kwh) (>600kWh) c c

4 4. PRE-PAID METERS (BUFFALO TARIFF) 4.1 Domestic Consumers (Up to 60A current limit single or three phase) Description Charge Charge (Municipal vendors: 5% surcharge INCLUDED) Basic/Fixed Charge per month R0.00 R0.00 Energy rate(c/kwh)(<=50kwh) 74.00c 77.70c Energy rate (c/kwh) (50-300kWh) 95.53c c Energy rate(c/kwh) ( kWh) c c Energy rate (c/kwh) (>600kWh) c c 5. PRE-PAID METERS (IMPALA TARIFF) 5.1 Commercial and Other Consumers (Up to 80A current limit single or three phase) Group Type of supply Fixed charge per month Energy charge per month per KWh Charge (Municipal vendors: 5% surcharge INCLUDED) Charge (Municipal vendors: 5% surcharge INCLUDED) Up to 80A current limit three phase R c R c A surcharge of 5% is levied on the energy charge where electricity is bought from institutions who sell electricity on behalf of Municipality. 6. MUNICIPAL BUILDINGS, STREET LIGHTS AND OTHERS (LEOPARD TARIFF) Departmental electricity consumption shall be charged at cost. The cost is based on the cost of the previous financial year divided by the number of units sold. The effect that the stadium has on the Matsafeni Eskom account will be used as a basis to cost the stadium electricity consumption.

5 7. COMMERCIAL, INDUSTRIAL AND GENERAL CONSUMERS (ELEPHANT TARIFF) 7.1 This tariff shall apply to electricity supplied and made available at 400/230V to the following: (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) Shops; Commercial houses; Office buildings; Hotels and boarding houses; Bars; Cafes, tea-rooms and restaurants; Combined shops and tea-rooms; Public halls; Clubs (With supply from 60Amps to 80 Amps) Holiday Flats; Industrial - or factory undertakings; Buildings or parts of buildings containing a number of classifications under to (k) and where the consumption in terms of this tariff is metered separately by the Municipality; Nursing homes and hospitals; Education and schools NOT charged the bulk or TOU tariffs, Any other consumer excluding those already described in terms of another tariff. 7.2 To qualify for the Elephant tariff the current may not exceed 80 Ampere and it must be restricted by such a circuit breaker. If the demand of any consumer exceeds 80 Ampere current, such consumer shall be classified as a bulk consumer; 7.3 The consumers must apply in writing for the type of supply, which they require; 7.4 Where a consumer has more than one connection the applicable tariff shall be payable for each connection; 7.5 The following charges shall be payable: Group Type of supply Fixed charge per month Energy charge per month per KWh Up to 80A current limit three phase R c Provided that: If a larger supply is required, the applicant must submit a written application to the Municipal Electrical Engineer motivating the reason for the increase in the supply from 80Amp current limit single or three phase connection. The MEE may approve or reject the application. (b) All costs involved in the connection > 80Amp current limit three phase be paid by the applicant. (c) The low or high tension tariffs, whichever is applicable, shall be applied.

6 8. BULK CONSUMERS (LION AND CHEETAH TARIFF) 8.1 Bulk consumers are divided into two groups namely : (b) Low Tension: Supply tension of 400V High Tension: Supply tension of 22 kv, 11 kv or 6.6 kv 8.2 The Municipality reserves the right to connect consumers with an estimated average monthly demand exceeding 80 Amp (55 kva) as bulk consumers. 8.3 A bulk consumer should notify the Municipal Electrical Engineer in writing with the required demand and should not request a larger demand as that which is to be used. 8.4 If a bulk consumer fails to apply for the correct demand a charge as calculated by the Municipal Electrical Engineer could be payable. 8.5 Metering shall be done on high tension if the required demand of a consumer is equal to, or exceeds 315 kva. 8.6 Customers will be charged on these tariffs if their average monthly consumption of the previous year is less than 200MWh. 8.7 The following charges shall be payable: (8.7.1) Including educational institutions complying with the classification under 8.1: Group Type of supply Fixed charge per month (b) Low Tension. (Lion Tariff) High Tension 6.6 kv, 11 kv & 22 kv (Cheetah Tariff) R1, R1, Maximum demand charge per month or part thereof R60.00 per kva. Demand measured by a kva meter over a period of 30 minutes or R60.00 per ampere. Demand measured by three ampere meters per consumer plus R61.00 per kva for Network Access Charge. R57.00 per kva. Demand measured by a kva meter over a period of 30 minutes or R60.00 per ampere. Demand measured by three ampere meters per consumer plus R61.00 per kva for Network Access Charge. Energy charge per kwh 80.00c c Provided that: (8.7.2) All costs involved in the connection larger than an 80Amp current limit three phase shall be paid by the applicant.

7 9. TIME OF USE (NYALA TARIFF) TOU (TIME OF USE) PERIODS Peak Standard Off-peak High-demand season means the TOU Period from 1 June to 31 August of each year. Low-demand season means the TOU Period from 1 September to 31 May of each year Reactive energy charge means a c/kvarh charge based on the customer s power factor and tariff. a c/kvarh reactive energy charge supplied in excess of 30% (0,96 PF) of the kwh recorded during the peak and standard periods. The excess reactive energy is determined per 30-minute integrating period and accumulated for the month and will only be applicable during the high-demand season; 9.1 LPU: LOW TENSION TARIFF (CONSUMPTION <4GWh PER MONTH) Energy Charge (c/kwh & c/kvarh) High Demand Season Peak Std Off Peak Reactive Low Demand Season Peak Std Off Peak Transmission & Distribution: Network Access Charges R/kVA R34.00 Service Charge Administration Charge Demand Charge R/kVA R1,384 R0.00 R42.00 Customers will be charged on this tariff if their average monthly consumption of the previous year exceeded 200MWh but was less than 4GWh.

8 (b) This tariff is based on the Eskom tariffs and will therefore be adjusted according to Eskom tariff increases. 9.2 HPU: HIGH TENSION TARIFF (CONSUMPTION <4GWh PER MONTH) Energy Charge (c/kwh & c/kvarh) High Demand Season Peak Std Off Peak Low Demand Season Peak Std Off Peak Transmission & Distribution: Network Access Charges R/kVA R33.00 Service Charge Administration Charge Demand Charge R/kVA R1, R0.00 R40.00 Customers will be charged on this tariff if their average monthly consumption of the previous year exceeded 200MWh but was less than 4GWh. (b) This tariff is based on the Eskom tariffs and will therefore be adjusted according to Eskom tariff increases. 10. VLPU: WARTHOG TARIFF (VERY LARGE POWER USER WITH CONSUMPTION >4GWh PER MONTH) Energy Charge (c/kwh & c/kvarh) High Demand Season Peak Std Off Peak Reactive Reactive Low Demand Season Peak Std Off Peak Transmission & Distribution: Network Access Charges R/kVA R21.00 Service Charge Administration Charge Demand Charge R/kVA R106, R0.00 R27.00 Customers qualify for this tariff if their average monthly consumption of the previous year exceeds 4GWh. (b) This tariff is based on the Eskom tariffs and will therefore be adjusted according to Eskom tariff increases. 11. CONTRACT TARIFFS 11.1 Crocodile Valley (Estates) Proprietary Limited (Crocodile Tariff) Electricity shall be supplied to Crocodile Valley Estates (Proprietary) Limited in accordance with an agreement entered into by and between the Municipality and Crocodile Valley Estates (Proprietary) Limited, dated 26 April 1977 and 10 July 1986.

9 12. CONSUMERS OUTSIDE THE MUNICIPAL BORDERS 12.1 All consumers to whom electricity is supplied and whose premises are situated outside the municipal borders but inside the distribution area of the Municipality, shall pay the applicable tariff in accordance with items 1 to 10 above Surcharge Besides the applicable charges in terms of sub-item 12.1, all consumers in this area shall pay a surcharge of 5% Connection and extension charges Consumers may pay for connection charges in cash or in the form of monthly extension charges. In cases where consumers pay in cash for connection charges a monthly extension charge for maintenance purposes shall be payable. This extension charge shall be determined for every consumer in accordance with the nature and type of connection and it shall be revised every three (3) years. This charge for maintenance shall also be included in the monthly extension charge of the consumer who did not pay in cash for the connection charges. The connection charges incorporates the costs of transmission lines measured from the Municipality's existing network inside the Municipality or from the Municipality's main transmission line, as well as all transformers and other equipment necessary for the complete connection. In both cases the lines and equipment remain the property of the Municipality. The Municipal Electrical Engineer shall calculate the extension charge on the basis of the estimated maximum demand of a consumer and the length of the supply line measured as from the municipal border along the route of the power line up to the consumers connection point, subject thereto that this part of the extension charge may be divided between a number of rural consumers who are served by the same extension line or part thereof. With the understanding further that the Municipal Electrical Engineer shall advise the Municipality with regard to a reasonable basis in respect of the division of such joint costs payable by rural consumers. The decision of the Municipality in respect of such a reasonable basis of division shall be binding.

10 13. CONNECTION- AND EXTENSION CHARGES Connections- and extensions in and outside the municipal borders, as well as temporary consumers, shall be subject to the following stipulations: 13.1 A charge shall be payable for every connection to the main supply of the Municipality and such charge shall cover all costs of material, labour, transport, tests and engineers services which are incurred by the Municipality to make the connection. The costs shall be determined by the Municipality's Engineer. Besides the cost calculated above, a surcharge of 15% with a maximum of R4, shall be levied in respect of administrative charges; 13.2 The main connection cable of the consumer shall be attached to the supply point of the Municipality; 13.3 The applicant should position the meter inside his erf facing the street front during connection; 13.4 The construction and position of every connection must be approved by the Municipality's Municipal Electrical Engineer; 13.5 Before a connection can be made in terms of sub-item 12.1, the applicant shall sign an Services Agreement with Council and pay a deposit equal to the estimated costs for the connection as calculated by the Municipal Electrical Engineer at a revenue office of the Municipality. Provided that: 13.6 Written approval is obtained from the Municipal Electrical Engineer that the stipulations of items 8.3 and 8.4 are adhered to. 14. CHARGES FOR DELIVERY OF SUPPLY 14.1 Reconnection Charge For the reconnection of a supply which was at the request of a consumer temporarily disconnected for a period of more than 30 days, except where the consumer requested a disconnection for the safeguard of apparatus or persons: R For the reconnection of a supply which was at the request of a consumer temporarily disconnected for less than 30 days: R Reconnection Fees For the reconnection of a supply where the supply was temporarily disconnected as a result the non-fulfillment of any of the Municipality's By-laws or Regulations as follows: R For the reconnection of a supply where the electrical metering equipment was tampered with: First tampering R1, (b) Second tampering R2,590.00

11 (c) Third tampering R4, (d) Fourth tampering Permanent disconnection of electricity supply 14.3 Non Payment Fee When an account is not settled before or on due date, for action taken by the Municipality in order to collect the outstanding moneys either by warning notices or by discontinuation of the electricity supply: R Charges payable when entering into a new consumers agreement Besides the deposit in terms of item 19 for services rendered namely the reading of the meter and, if applicable, the connection of the supply following a request of a consumer when entering into a new consumer s agreement: R Removal and Restoration of supply For the removal of the installation permanently (RIP) and restoration thereof at a later stage for credit control purposes: Overhead line R1, Underground cable R1, Underground reticulation R3, Consumers outside municipal borders Besides the charges payable in terms of sub-items 14.1 to 14.4, transport coasts in accordance with a tariff per kilometer as from time to time determined by the Municipality, per return journey, shall be payable by a consumer whose premises is situated in a specific area outside the municipal border and a return journey shall be measured form the municipal border up to a central point within that area Additional charges outside normal working hours Besides the charges payable in terms of sub-items 14.1 to 14.5 or where the electricity supply has to be reconnected in terms of 14.3 or if a service is rendered in connection to pre-paid meters, additional charges due by the consumer for the said services being done outside normal working hours: R CHARGES FOR INVESTIGATION OF COMPLAINTS For the investigation of a complaint by a consumer of a power failure and where it is found that the interruption of the power supply is caused through a defect in the installation of the consumer or due to the faulty operation of apparatus used by the consumer in the installation, per investigation: R during normal working hours and R after normal working hours.

12 16. CHARGES FOR SPECIAL METER READINGS 16.1 Where possible, the meter readings are taken at intervals of one month. Should a consumer request the Municipality to take a meter reading at any other point in time than on the specified date, an amount of R per reading shall, except where the service is rendered to the consumer in terms of sub-item 12.4 be payable by the consumer For the retaking of a meter reading in the event where a consumer contests the reading and requests that the meter be reread to confirm the reading, a charge of R is payable if the reading confirms the original reading to be correct. 17. CHARGES FOR THE TESTING OF METERS If an authorised employee of the Municipality is requested to test the accuracy of a meter or is required to have a meter tested, a charge shall be payable, which amount shall be refunded if the meter proves to be over or under registering by more than 5% when tested in accordance with the code of practice of the SA Bureau of Standards for the testing of electricity meters or in accordance with the procedure laid down by the Engineer Single phase meter R Three phase meter R Bulk meters (meters > 80A) Per quoted price 18. CHARGES FOR INSPECTION AND TESTS 18.1 For the first inspection and test in terms of section 16(8) of the Electricity By-laws: free of charge; 18.2 For the subsequent inspection or tests in terms of section 16(8)(b) of the Electricity Bylaws: Per inspection or test: R plus Transport costs at a tariff per kilometre per return journey outside the municipal borders, measured from the municipal border to the inspection or test point, as determined by the Municipality from time to time. 19. DEPOSITS The deposit payable shall be determined as prescribed in section 18(1) of the Municipality's Electricity By-laws. 20. INTEREST RATE The interest rate on amounts in arrears on all services shall be determined for each financial year and calculated on the basis of the prime lending rate applicable at 30 June of each year as determined by the South African Reserve Bank plus 1 % fixed for the ensuing 12 months of the financial year. 20. VALUE ADDED TAX

13 The tariffs do NOT include value added tax. SL DITSHEGO ACTING MUNICIPAL MANAGER Civic Centre P O Box 45 NELSPRUIT 1200

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