Clr Makhubo announces tariff increases
Member of the mayoral committee for finance in the City of Johannesburg (CoJ), Clr Geoffrey Makhubo, announced the proposed rates and service tariff increases last Tuesday.
The proposed average tariff increase for electricity is 7.5 percent.
He said this is lower than the National Energy Regulator of South Africa (Nersa) and Eskom proposed tariff increase of 7.3 percent.
“The city applies a stepped tariff structure for electricity services. The effect is that the more electricity a consumer uses, the more they pay. The aim is to reduce electricity usage,” said Clr Makhubo.
The proposed water and sanitation tariff increase is 8.9 percent.
Clr Makhubo said the water tariff setting is based on ensuring protection of basic levels of service, provision of free water to the poor and to encourage efficient and sustainable consumption.
Registered indigents will continue to receive free electricity and water, and sanitation services as part of the extended social package.
Refuse removal services are set to increase by six percent for domestic customers and eight percent for businesses and commercial customers. Properties valued at less than R200 000, and households registered for the extended social package, will continue to receive free refuse removal services.
Property rates increase by five percent.
Rebates are as follows:
Pensioner owners with a gross monthly household incomes of less than R7 000 and property values not more than R2-million are given a 100 percent rebate. Those with gross monthly incomes higher than R7 000, but less than R12 000, qualify for 50 percent.
Residential sectional title rebates have dropped from 15 percent to 10 percent.
100 percent rebates to organisations responsible for animal protection.
20 percent rebate for heritage sites.
Clr Makhubo said, “Tariffs are set with a view of striking a balance between the wide spectrum of households in Johannesburg and taking particular note of the interests of poor households. Tariffs are also set cognisant of the impact of remaining competitive and attracting investment into the city.
It is within this context that the tariff increases for the 2014/15 financial year are proposed.”
@JoziReporter
