Tariffs City of Joburg

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Electricity tariffs: City of Joburg withdraws proposed fixed charges

Due to public outcry, the City of Joburg has taken a decision to withdraw the proposed tariffs for pre-paid electricity. Other tariffs have been reduced.

Tariffs City of Joburg

Image via: Adobe Stock

The City of Johannesburg on Thursday 9 July 2020 presented the 2020/21 to 2022/23 Medium Term Budget. In doing so, the City of Joburg decided to withdraw the proposed fixed charges of R200 for residential and R400 for commercial pre-paid electricity. This follows public concerns and suggestions expressed by Johannesburg residents to the proposed tariffs. 

PROPOSED PRE-PAID ELECTRICITY TARIFFS WITHDRAWN

The Johannesburg Member of Mayoral Committee (MMC) for Finance Jolidee Matongo said the tariff setting process, which was presented through a public participation engagement, took into consideration the likely impact the initially proposed tariff increases had on the local economy, businesses and residents. 

Following public outcry, the City of Joburg took a decision to withdraw the proposed fixed charges of R200 for residential and R400 for commercial pre-paid electricity. 

The property rates tariff will also be reduced from the proposed 4.9% to 4%, the water tariff will also drop from the initial proposal of 8.6% to 6.6%, and the electricity tariff goes down from 8.10% to 6.23%. Meanwhile, the business rates ratio will be reduced from 1:2.6 to 1:2.5.

“In addition to these tariff relief interventions, the pensioner income qualifying criteria has increased by 6%. This means a pensioner with a property value of below R2.5 million and an income of below R10 338 for the lower limit or below R17 719 for the upper limit, will receive a 100% rebate on their rates,” said Matongo. 

“This effectively means an increased number of pensioners will now qualify for the City’s rebates,” he said.

ALLOCATIONS IN THE NEW BUDGET

Besides the reduction of certain tariffs, here are some of the allocations that were announced in the mid-term budget.

  • A total of R1.2 billion has been allocated for the formalisation of informal settlements over the medium term.
  • Up to 500 000 food parcels and vouchers to be distributed to vulnerable households amidst indications that more than a million households in Johannesburg are food insecure.
  • Up to R820 million has been allocated over the medium term for stormwater upgrades across the City including in Protea Glen. 
  • An operating budget of R12.8 billion in 2020/21 – with a three-year capital budget of R3.1 billion for the continuous supply of water and sanitation to the people of Johannesburg – both in formal and informal settlements where rudimentary services in a form of chemical toilets and water tanks will be added and serviced regularly.
  • City Power has been allocated a three-year capital budget of R2.6 billion, which will fund the provision of public lighting at R205 million, the electrification of informal settlements at R498 million and the electrification of Mega Projects at R100 million.
  • The maintenance and refurbishment of existing electricity infrastructure, supporting infrastructure such as ICT and integrated security and fire protection systems at R22.7 million.
  • The improvement of refuse collection in informal settlements through the provision of more waste bags and more strategically placed skip bins. These interventions will be rolled out alongside the City’s ongoing Kleena Joburg Campaign.