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CITY MOVES TO CUSHION RESIDENTS FROM INCREASING SERVICE COSTS

City of Johannesburg’s Member of the Mayoral Committee (MMC) for Finance,  Dada Morero, said the City is trying hard to protect its residents from the rising costs of services through its balanced tariff structure.

 Morero recently announced that City will implement the new tariffs for key services, namely, electricity, water, property rates, refuse and sanitation on 1 July 2023.

“We understand that many households are currently struggling from the high rising costs of services. The City understands that our residents are battling under low economic growth, unemployment, loadshedding and still feeling the effects of Covid-19 pandemic. We want to assure residents that the City has listened to their comments and inputs,” said Morero.

 Morero announced that the City will increase tariffs for key services as follows:

  • Electricity: 14.97 %
  • Property Rates 2%
  • Water: 9.3%
  • Sanitation: 9.3
  • Refuse: 7%

According to  Morero, the City is striving to subsidize more residents who are unable to afford the high costs of municipal services. This is because the City was already buying bulk services such as electricity and water at the very high cost.

For City Power, the bulk purchases cost for financial year 2023/24 are budgeted to be about R16.4 billion after the National Energy Regulator (NERSA) allowed Eskom an average tariff increase of 18.65%, which is way above inflation. As more than 75% of City Power’s operating budget is attributable to bulk purchases cost, it is the most significant driver of City Power’s operating budget.

 Morero stressed that, indeed the City took the comments from residents during the recent Integrated Development Plan (IDP) meetings, as a result the City will increase property rates by only 2% instead of 5%. The MMC said this is a huge relief and will put money back to many households.

Relief the City offers for residents on different services:

  • All residential properties under the R300 000 threshold will be exempted from paying rates.
  • Residents to receive 6 kilolitres of free water.
  • Properties valued at R350 000 and below will be exempted from paying waste charges.
  • Pensioners between ages 60 – 69
  • Pensioners whose gross monthly household income is lower than R11 904 and the property value up to R 1.5 million (inclusive of the residential threshold value) for pensioners from the age of 60.
  • Qualify for 100% rates rebate up to market value of R1.5 million (inclusive of the residential threshold value). Rates will be levied on the balance of the values of the properties that exceed the R1.5 million.
  • Pensioners whose gross monthly household income is more than R11 904, but equal or less than R20 404, and the property value up to R 1.5 million (inclusive of the residential threshold value) for pensioners from the age of 60. 
  • Qualify for 50% rates rebate up to market value of R1.5 million (inclusive of the residential threshold value). Rates will be levied on the balance of the values of the properties that exceed the R1.5 million.
  • Pensioners of 70 years and above
  • Income levels are not considered.
  • Qualifies for 100% rates rebate up to market value of R2 million (inclusive of the residential threshold value). Rates will be levied on the balance of the values of the properties that exceed the R1.5 million.

In line with our vision of the future service delivery model away from strictly electricity distribution entity to energy solutions service provider, the City of Joburg Council has also approved generator-use-of-system tariffs (wheeling tariffs). 

The tariff will be applicable to generators of electricity who may want to service customers embedded within the City Power area of supply but will be charged to their respective end customers. 

The tariff will also be applicable to customers who self-generate electricity for use at a location elsewhere on the City Power electricity distribution network. 

Third party generators who would like to supply a customer/s within the City Power network will be required to apply for third party access to our network infrastructure. 

Though City Power is obliged to give such generators ‘third party” access to its network at a reasonable charge for services rendered or “wheeling services”, it will be subject to compliance with our safety requirements.

INFO SUPPLIED.

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