The Good Party has raised alarms over what it describes as an ‘extortionary tactic’ by the City of Cape Town, accusing the municipal government of failing to clearly communicate impending increases on utility bills that could see low-income residents paying nearly 10% more each month.
This stark revelation comes from a detailed budget assessment conducted by the party, Cape {town} Etc reports.
The party’s secretary-general Brett Herron points to a troubling lack of transparency regarding upcoming tariff changes.
‘The deadline for public comments on the budget has passed without residents being fully informed of the tariff increases that await them,’ Herron said, signalling the party’s frustration with what they deem inadequate communication from the City.
Herron’s critique further emphasised that while the City has advertised a below-inflation 2% increase in electricity tariffs, the overall financial strategy appears to mask significant revenue increases, tipping its hat to a misleading ‘tariff juggling act.’ Instead of alleviating the financial burden, the City is projected to increase its revenue from ratepayers by more than 22% in the coming fiscal year—a concern that Herron deems unacceptable.
‘Much of the City’s sleight of hand appears to be driven by a desire to appear compliant after criticism for two years of higher-than-permitted electricity tariff increases. To frame a mere 2% increase as a victory is misrepresentation at its finest,’ Herron charged.
According to Herron, while the new tariffs have been presented as beneficial to the poorest households, the stark reality shows that indigent residents will suffer a hike of roughly 9.88% on their monthly bills an increase ignited by the new cleaning tariff that replaces previous electricity overcharges.
The party has urged residents to engage and convey their discontent to ward councillors in the coming weeks, coinciding with a critical council meeting set for 29 May.
‘Councillors who support the budget must be held accountable for unreasonably taxing the poorest residents in our city,’ Herron warned, reinforcing the call for civic engagement against what the Good Party refers to as economic ‘snake oil,’
Further elucidating the City’s budget, Herron remarked that last year, Cape Town purchased electricity from Eskom at a cost of R15.472 billion, subsequently selling it for R21.328 billion. This resulted in a profit margin of R5.586 billion touted as a ‘contribution to rates,’
However, despite the mayor’s claim that the electricity tariff will no longer contribute to this, projections indicate profits of R4.727 billion will still arise from electricity sales, with an additional R2.457 billion expected from the new cleaning tariff, Herron said.
‘Residents are set to face a combined increase of 22.6% in their rates bills this year.
‘If this revenue was aimed at reducing the inequalities evident in the living environments of Capetonians, there could be merit in these increases, but the budget does not reflect such prioritisation,’ Herron said.
Also read:
CT’s draft budget could hit your wallet hard: Here’s how to object before the deadline
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