Annual hikes have been kept to a minimum for City customers, who will see them reflected in their municipal accounts later in the July and subsequent billing cycles.
It is so critical to limit utilisation in order to cut costs wherever possible.
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‘Cape Town has some of South Africa’s most inclusive assistance for rates and tariff relief. We further offer among the lowest property rates for Commercial, Industrial, and Residential properties,’ said the City’s Mayoral Committee Member for Finance Councillor Siseko Mbandezi.
‘Rates and tariffs are used to enable basic services and for future-proofing for water and energy security and what Cape Town needs.’
‘The City has been able to reduce Eskom’s 12,74% increase to 11,78%, and offer protection for lower income customers on the subsidised Lifeline tariff, while still funding R4bn in electricity grid upgrades and plans to end sole reliance on expensive Eskom power as soon as possible. The City spends more than 70% of its electricity tariff income to buy electricity from Eskom, with the City’s 2024/25 tariff based on a cost of supply submission to Nersa.’
‘As always, this time of the year, we advise our customers to be mindful of the context: in winter we use more electricity and this combined with the annual increase increases household costs.’
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‘To shield households using more, especially in winter, Lifeline customers will pay 44% less (R1,89 less per unit) when using over 600 units. Last year, Cape Town raised the number of units that can be bought at a cheaper, subsidised rate, from 350 to 600 units per month. Thanks to these changes, Lifeline customers using 600 units in a month, will still pay R113,94 less compared to two years ago in 2022/23. Now you can also buy cheaper units after 600-unit usage, provided you stay within the 450 unit monthly average over 12 months to remain on the Lifeline tariff.’
‘The best way to reduce costs is to reduce usage. For instance, turn the geyser temperature down to 60°C or put your geyser on a timer. Furthermore, buying electricity in bulk is not cheaper. Buy only what you need in a given month. When buying in bulk, you move onto a higher tariff block, which is more expensive.’
Rates and tariffs from 1 July 2024
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Property rates increase: 5,7% (for shared services like clinics, fire services)
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Eskom-driven electricity increase: 11,78% (City) (12,74% Eskom)
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Water and sanitation increase: 6,8%
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Refuse removal increase: 5,7%
Cape Town has SA’s most inclusive criteria for rates and indigent relief:
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Highest free water allocation (15KL)
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Widest qualifying criteria for 100% rates rebate (R450 000 property value, less than or equal to R7 500 monthly income)
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Widest criteria for lifeline electricity (R500 000 property value, less than or equal to R7 500 monthly income)
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Pensioners: widest rebate and lifeline electricity criteria (less than or equal to R22 000 monthly income, regardless of property value)
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