Residents of major metros across South Africa face alarming municipal tariff increases, with eThekwini residents facing the sharpest increases.<\/p>\n
Several major metros in South Africa have tabled their draft budget proposals for the 2023\/24 financial year, revealing hefty tariff increases for residents \u2013 including property rates, electricity, water, sanitation, and refuse removal.<\/p>\n
Addressing the reasons for the proposed tariffs, many of the municipal mayors said that above-inflation Eskom, water board, and salary increases have made tariff increases inevitable.<\/p>\n
However, some residents in South Africa are posed to step into deeper waters than others, with eThekwini Metropolitan Municipality drafting the steepest increases.<\/p>\n
Although electricity price hikes are mostly in line with Eskom’s 18.49% increase approved by Nersa, eThekwini drafted a massive increase compared to other major metros. At the same time, the City of Cape Town has managed to shield its residents slightly.<\/p>\n
eThekwini tabled a whopping 21.91% electricity tariff increase \u2013 3.32% higher than Eskom’s 18.49% municipal hike \u2013 while its water tariff is set to increase by a notable 14.9%.<\/p>\n
eThekwini Mayor Mxolisi Kaunda said this is a result of Umgeni Water’s approved tariff increase for bulk water is around 13%, although no explanation was given for the massive electricity increase.<\/p>\n
On the other hand, the City of Cape Town has reduced Eskom’s 18.49% municipal rate increase to 17.6% by absorbing about R15 million a month.<\/p>\n
According to Cape Town’s mayoral committee member for finance, Siseko Mbandezi, about 70% of Cape Town’s tariff income will go towards buying bulk electricity from Eskom, with the remaining 30% invested in service delivery and ending load shedding.<\/p>\n
Additionally, the City of Cape Town has proposed a 1.1% decrease in property rates. This is due to the new 2022 valuation roll that will come into effect in July. Cape Town plans to give residents a break for properties valued at less than R5-million, with the first R450,000 of the property value exempt from rates.<\/p>\n
By contrast, while the City of Johannesburg tabled a 5.3% property rate increase, this is in combination with the increase from the new valuation roll (12%), which means rates will increase by around 17% on average.<\/p>\n
The table below outlines the proposed tariff increases across several major metros.<\/p>\n
It must be noted that the City of Ekurhuleni’s planned increase in residential electricity tariffs by 15% was tabled before Nersa pronounced Eskom’s municipal tariffs, which leaves room for adjustments.<\/p>\n
| Municipality<\/th>\n | Rates<\/th>\n | Electricity<\/th>\n | Water<\/th>\n | Sanitation<\/th>\n | Refuse removal<\/th>\n<\/tr>\n | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| City of Joburg<\/td>\n | 5.3%<\/td>\n | 18.65%<\/td>\n | 9.3%<\/td>\n | 9.3%<\/td>\n | 7%<\/td>\n<\/tr>\n | ||||||||||||||||||||||||
| Tshwane<\/td>\n | 5.0%<\/td>\n | 18.0%<\/td>\n | 9.2%<\/td>\n | 9.2%<\/td>\n | 6%<\/td>\n<\/tr>\n | ||||||||||||||||||||||||
| eThekwini<\/td>\n | 8.9%<\/span><\/td>\n | 21.9%<\/span><\/td>\n | 14.9%<\/span><\/td>\n | 11.9%<\/span><\/td>\n | 8%<\/span><\/td>\n<\/tr>\n| City of Cape Town<\/td>\n | -1.1%<\/span><\/td>\n | 17.6%<\/span><\/td>\n | 8.6%<\/span><\/td>\n | 8.6%<\/span><\/td>\n | 5.5%<\/span><\/td>\n<\/tr>\n | Ekurhuleni<\/td>\n | 4.4%<\/td>\n | 15.0%<\/td>\n | 12.0%<\/td>\n | 5.3%<\/td>\n | 5.3%<\/td>\n<\/tr>\n | Nelson Mandela Bay<\/td>\n | 5.0%<\/td>\n | 18.49%<\/td>\n | 6.0%<\/td>\n | 6.0%<\/td>\n | 6.0%<\/td>\n<\/tr>\n | Buffalo City<\/td>\n | 8.0%<\/td>\n | 18.65%<\/td>\n | 9.86%<\/td>\n | 5.3%<\/td>\n | 5.3%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n | The proposed electricity tariffs are subject to Nersa’s pending finalisation of its tariff guideline.<\/p>\n In April 2023, Nersa proposed that municipalities only increase electricity tariffs by 15.1% from July, and its final guidelines will likely be published in May.<\/p>\n Under its current proposal, if the 15.1% guideline is approved, municipalities \u2013 including the major metros \u2013 will have to limit their increases to this amount unless they have compelling reasons and a motivation to deviate.<\/p>\n This includes a cost of supply study, which only four out of 176 municipalities have fully implemented.<\/p>\n \n |