Residents dig deeper as municipal tariff increase kicks in

Residents in Cape Town will have to dig deeper into their pockets as the municipal tariff increase comes into effect on Monday.

PICTURE: Pixabay

If your electricity is supplied by the City of Cape Town, you will from 1 July, pay 11,78% more. Eskom customers will unfortunately fork out 12,74% more to keep the lights on, amongst others.

The City’s Property rates as well as those weekly refuse removal services increased by 5,7% (for shared services like clinics, fire services)

Water and sanitation also goes up by 6,8%

Despite the increase, the municipality is adamant that these costs are low compared to various municipalities across the country

‘’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. Rates and tariffs are used to enable basic services and for future-proofing for water and energy security and what Cape Town needs,’’ said Siseko Mbandezi, Mayoral Committee Member for Finance.

‘’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,’’ he added.

Residents tends to spend more on electricity as the cold sets in for winter days

‘’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,’’ said Mbandezi.

He advised residents not to bulk buy as this will cost more.

‘’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,’’ said Siseko Mbandezi, MMC for Finance.

Civic organisation, Stop CoCT (Stop City of Cape Town), says residents remain the hardest hit.

‘’Stop COCT’s stance on the recent increases in water, electricity and rates, remains the same over the last couple of years. It just keeps on going up, regardless of what the citizens say. Every year it nears the breaking point where this can no longer go on. As usual the working class are the worst affected by the tariff increases. However, the City refuses to listen or cooperate from anybody of the civil society to alleviate these problems.’’

 

Done By: Mitchum George