The City of eThekwini has revised its proposed lower electricity price increase for 2023 while also marginally reducing the property and sanitation rate hikes.<\/p>\n
The city tabled its revised budget to be adopted by the council on Wednesday (31 May). According to the city, the updated proposal makes the following tariff revisions:<\/p>\n
“We have noted the response by residents to this increase,” the city said, “Hence we are tabling the revised figure.”<\/p>\n
The city said that balancing the budget against the increased pressure on households has been difficult. Tariffs need to be cost-reflective, it said, but also need to ensure there is enough money for service delivery. The revised tariffs are an effort to cushion the blow, it said.<\/p>\n
Notably, most proposed service fee hikes have been reduced except for water.<\/p>\n
Regarding the water tariff, the city said that the circumstances are more challenging, and so the 14.9% increase for residents and 15.9% for businesses remains unchanged.<\/p>\n
Some of the key drivers impacting the water hike include: a 5.5% increase imposed by Umgeni Water; a 3% increase related to the building of a new dam; a 4.3% for maintenance and repairs; and a 1% towards security, among other factors.<\/p>\n
The revisions bring eThekwini’s electricity price increases in line with the rest of the major metros, and also in line with the increase granted to Eskom by energy regulator Nersa.<\/p>\n
The tariff increases will kick in from 1 July 2023.<\/p>\n
Major metros in South Africa have tabled their draft budget proposals for the 2023\/24 financial year, revealing hefty tariff increases for residents – 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
While eThekwini’s electricity tariff is no longer the highest among the metroes, its other increases remain squarely more expensive than other cities. The metro, along with KwaZulu-Natal at large has been beset by a myriad of issues that have put budgets under severe strain.<\/p>\n
On the other end of the spectrum, the City of Cape Town has reduced Eskom\u2019s 18.49% municipal rate increase to 17.6% by absorbing about R15 million a month.<\/p>\n
According to Cape Town\u2019s mayoral committee member for finance, Siseko Mbandezi, about 70% of Cape Town\u2019s tariff income will go towards buying bulk electricity from Eskom, with the remaining 30% invested in service delivery and ending load shedding.<\/p>\n
The proposed rate hikes are listed below.<\/p>\n
It must be noted that the City of Ekurhuleni\u2019s planned increase in residential electricity tariffs by 15% was tabled before Nersa pronounced Eskom\u2019s municipal tariffs, which leaves room for adjustments.<\/p>\n
| Municipality<\/th>\n | Electricity<\/th>\n | Water<\/th>\n | Property<\/th>\n | Sanitation<\/th>\n | Refuse removal<\/th>\n<\/tr>\n | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| City of Joburg<\/td>\n | 18.65%<\/span><\/td>\n | 9.3%<\/td>\n | 5.3%<\/td>\n | 9.3%<\/td>\n | 7.0%<\/span><\/td>\n<\/tr>\n| Tshwane<\/td>\n | 18.0%<\/td>\n | 9.2%<\/td>\n | 5.0%<\/td>\n | 9.2%<\/td>\n | 6.0%<\/td>\n<\/tr>\n | eThekwini<\/td>\n | 18.49%<\/td>\n | 14.9%<\/span><\/td>\n | 7.9%<\/td>\n | 10.9%<\/span><\/td>\n | 6.9%<\/span><\/td>\n<\/tr>\n | City of Cape Town<\/td>\n | 17.6%<\/td>\n | 8.6%<\/td>\n | -1.1%<\/td>\n | 8.6%<\/td>\n | 5.5%<\/td>\n<\/tr>\n | Ekurhuleni<\/td>\n | 15.0%<\/td>\n | 12.0%<\/td>\n | 4.4%<\/td>\n | 5.3%<\/td>\n | 5.3%<\/td>\n<\/tr>\n | Nelson Mandela Bay<\/td>\n | 18.49%<\/td>\n | 6.0%<\/td>\n | 5.0%<\/td>\n | 6.0%<\/td>\n | 6.0%<\/td>\n<\/tr>\n | Buffalo City<\/td>\n | 18.65%<\/span><\/td>\n | 9.86%<\/td>\n | 8.0%<\/span><\/td>\n | 5.3%<\/td>\n | 5.3%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n | \n |