The City of Cape Town has slashed Eskom’s 12.72% municipal rate hike to 11.78%, even as hefty tariff increases loom over South Africa’s big cities.
Also read: Cape Town’s new electricity tariffs are unlawful, says Nersa
In its budget, the City highlighted that this increase would enable the ongoing provision of rates-funded services, investment in infrastructure and generators to tackle loadshedding, servicing of informal settlements, rebates for the most vulnerable, enhanced safety measures, ongoing repairs and maintenance, and the implementation of the Integrated Development Plan for rates-funded services.
Conversely, the City proposed a 5.7% hike in property rates, a steep increase from the 1.1% decrease tabled last year.
BusinessTech reports that the planned tariff hikes set for 1 July 2024, indicate that residents should brace for substantial fee hikes. Property rates, electricity, water, sanitation and refuse removal are some services facing fee increases.
Some municipal mayors responded that the tariff increases are unavoidable due to above-inflation hikes from Eskom, water boards, and salary increases.
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Although electricity price hikes mostly match Eskom’s Nersa-approved 12.72% increase, Nelson Mandela Bay and eThekwini have proposed substantial increases compared to other major metros. In contrast, Johannesburg and Cape Town have slightly protected their residents from these hikes.
Nelson Mandela Bay proposed a steep 15.7% electricity tariff increase, which is 2.98% higher than Eskom’s municipal hike, while eThekwini is poised for a significant 14% increase.
Mayor of eThekwini, Mxolisi Kaunda, admitted that the proposed increases surpass inflation but cited the current economic climate as the reason for their inevitability.
However, facing double-digit increases across most services, the eThekwini Ratepayers’ and Residents’ Association (ERRA) urged ratepayers and residents to oppose the increases due to poor services and failing infrastructure.
Meanwhile, the City of Johannesburg has proposed a 4.8% increase in property rates alongside a 7.7% increase in water and sanitation services.
The proposed tariff increases are not final and will undergo various consultation processes.
The draft budgets will be open for public participation and comments, followed by a review by the National Treasury before being presented to the respective councils.
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Cape Town ratepayers will see an increase of 17.6% in electricity tariffs
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