Residents of Cape Town may begin to feel the pinch as yet another tariff has been proposed by the City of Cape Town. In the last few months alone, residents have had to make provisions for the 1% VAT increase, the rising cost of petrol (with another predicted hike to come to set in in the month of June), as well as the proposed 55% water tariff increase.
This week Acting Mayor Ian Neilson explained that the proposed water tariff increase is not yet set in stone, and that the often-quoted 26.9% proposed hike in water tariffs in the City’s draft budget only applies to the use of non-potable water.
Further to these costs, a new tariff has been proposed – this time for electricity.
Speaking to KFM this morning, Hoosain Essop, manager for Electricity Retail Management at the City of Cape Town, said that the Home User Tariff will apply to residents who have prepaid electricity meters and live in a home with a value of R1-million or more. It will also apply to residents who use a credit meter, irrespective of the value of their home.
The affected homeowners may have to pay a flat rate of R150 per month, in addition to other municipal costs. The fixed charges will be used for maintenance and operating costs.
Essop explained that less than 200 000 residents will be affected by this tariff, as it only affects users who consume less than 600 kilowatts of electricity per month.
Thereafter, residents will pay the following tariffs:
– R1.8532 per kilowatt for less than 600 units per month
– R2.1032 per kilowatt for more than 600 units per month
“If you use more than six-hundred units, you won’t really see a difference in the cost of electricity because you pay a reduced fee in your unit charge,” Essop said.
He also added that the City wants residents to pay their fair share of the cost of providing electricity.