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City Budget release

City of Joburg hikes power tariffs by 7.3%

Joburg residents need to tightened their belts and reduce their consumption after the Member of the Mayoral Committee (MMC) for Finance in the City of Johannesburg, Cllr Funzela Ngobeni, announced a 7.37% increase in electricity tariffs from 01 July 2018.

MMC Ngobeni was tabling a R59 billion budget for the 2018/2019 financial year in in the Council Chamber in Braamfontein today, 24 May 2018.
He said the increase was largely as a result of the application of the National Energy Regulator of SA municipal tariff guidelines applied on the Eskom increase of 6.84% and includes services and distribution costs.
“This is required to ensure that City Power can refurbish its aging Infrastructure and bring services to places, which have never had services before,” said Cllr Ngobeni.
City Power has been allocated a R1 billion capital budget In the 2018/2019 financial year. This is a 25% increase from the 2017/2018 budget. This includes an allocation of R117 million for the electrification of informal settlements up from R60 million in the 2017/2018 financial year. It will ensure that informal settlements in Lindhaven, Kliptown, Princess and Ruimsing receive power.
“For over two decades since democracy, many of our communities have never known access to safe and reliable electricity. The streets remain dark at night, leaving residents vulnerable to criminals.
“Communities have fallen victim to fires because of their reliance on paraffin and candles for their everyday household needs,” said MMC Ngobeni.
In the past financial year, the City brought safe electricity to the communities of Slovo Park, Meriting, Elias Motsoaledi and Klipspruit.
In the next three years, the focus of City Power’s capital investment strategy will also be to complete a number of refurbishments and buildings of key substations and replace ageing transformers, as well as transmission lines.
These include Sebenza, Rooseveldt Park, Orlando, Eldorado Park, Cleveland, Mulbarton, Nancefeld, Wilro Park and Lutz substation.
“The upgrades to these facilities will stabilise the City’s high and medium voltage network, especially in areas plagued by illegal connection and overloading. This will reduce the number of Low voltage outages experienced by our communities,” said MMC Ngobeni.
The City has also set aside R45 million for the installation of new public lighting city-wide, including our informal settlements, as well as an additional R20 million for the repairs and maintenance of existing public lighting within the City.
“This is part of our commitment to ensure that the City of Johannesburg shines brightly at night once more and brings safety and security to neighbourhoods in desperate need,” explained MMC Ngobeni.
About R120 million has been allocated to City Power in 2018/2019 for the replacement of old meters with semi-automated and automated pre-paid meters in order to reduce the need for manual meter reading. It will assist us to increase the reading accuracy of metres. This is expected to reduce the many billing queries related to incorrect meter readings. ​

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