New R50 levy proposed for ‘wealthy’ households in Johannesburg

The City of Johannesburg has proposed the formal introduction of a ‘recycling levy’ as part of its 2021/2022 tariff changes.

Included as a separate charge from the refuse levy, the recycling charge will focus on the ‘separation of waste at the source of generation’ – which includes households.

As part of the proposed levy, affluent households in various suburbs – excluding those located in areas classified as township or informal settlement – will be charged an additional levy at R50 per month for all properties with a market value above R350,000.

The city’s waste management bylaws have made it mandatory for every household within the City of Johannesburg’s jurisdiction to separate waste at their households and businesses.

Johannesburg’s waste management provider Pikitup has also said it will be rolling out a full programme for the collection of recyclables from households.

A pilot system, which is already in place in some suburbs, provides households with two plastic bags – a black one for general refuse and a blue one for recyclable waste.

Other increases 

The City of Johannesburg has also proposed water and electricity price hikes as part of its draft Integrated Development Plan (IDP) and the Medium-Term Expenditure Framework Budget

All energy charges (c/kWh) across all customer categories are proposed to be increased by 14.59% except for the following customer categories which will be subjected to varied increases to energy charges:

  • Conventional business;
  • Large Power User Time of Use (LPU TOU);
  • Residential Prepaid.

It is also proposed for residential and business prepaid customers to start making appropriate contribution to the cost of operating and maintaining the City Power electricity distribution network to be available on demand.

This will include a capacity charge of R200 for residential customers and a R400 for business prepaid customers. It is envisaged that the customer categories will fully align to respective comparative tariffs over a three-year tariff journey, the city said.

The proposed tariff increase for the 2021/22 financial year applicable to the various tariff bands is as follows:

  • The first 6 kilolitres will be provided free for residential customers;
  • Residential post-paid and prepaid water revenue to be increased on average by 6.8%;
  • Residential post-paid and prepaid sanitation tariffs to be increased on average by 6.8%;
  • Institutional tariffs to be increased by 8.9% for consumption up to 200Kl and consumption exceeding 200kl by 11.9% to narrow the gap compared to commercial tariff;
  • Industrial/Commercial tariffs to be increased by 6.8%;
  • Demand Levy to be increased by 6.8%;
  • All other tariffs to be increased by an average of 6.8%.

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New R50 levy proposed for ‘wealthy’ households in Johannesburg