Johannesburg - Joburg’s residents will receive a 14.97% increase in electricity tariffs, said City of Joburg MMC of finance Dada Morero, during his Budget presentation in the council chambers yesterday.
The hike comes as the municipality is battling to clamp down on illegal connections and theft of electricity.
“The electricity tariff increase applicable for the 2023/24 financial year is 14.97% based on the Nersa determination for local government. Despite resources being limited, this Budget has sought to increase allocations for electricity infrastructure renewal and maintenance to counter the effects of service disruptions. We have also made money available to safeguard our infrastructure from theft and vandalism,” Morero said.
He said many municipalities, like Joburg, were looking for alternative power sources to plug the supply gap.
“Through a feasibility study with clear timelines, City Power will commit to entering into long-term power purchase agreements with IPPs for the purchase of renewable energy.”
Morero said the water tariff increase applicable for 2023/24 was 9.3% based on the anticipated bulk water charge from Rand Water. The first 6 000 litres remain free for all residents, while additional provision has been made for indigent residents, who will receive a monthly benefit of R307 compared with the previous R25 equivalent.
The sanitation tariff increase for 2023/24 was 9.3%. The refuse tariff increase for 2023/24 was 7%, which was informed by a cost recovery model for the entity.
Morero said in the new financial year of 2023/24, the property rates would increase by 2%. “We have also made some changes to rebates and relief measures offered to residents, notably the introduction of a sliding scale on pensioner rebates.
“The first R1.5 million of the property value (inclusive of the residential threshold value) for pensioners between the ages of 60 and 69 will be exempted from rating, and the first R2m of the property value (inclusive of the residential threshold value) for pensioners aged 70 and above will be exempted,” he said.
Morero said all qualifying pensioners will receive the rebate.
Morero presented an R80.9bn Budget, with the allocations aligned to the 11 priorities identified by the
Government of Local Unity.
A capital budget of R14.9bn across the medium term and an operational expenditure budget of R45bn in the 2023/24 financial year have been allocated to the Sustainable Services Cluster.
The Environment and Infrastructure Services Department is allocated an operational expenditure budget of R133.7m and R57m for the three-year capital budget.
The Human Settlements Department has been allocated an operational expenditure budget of R1.2bn and a multi-year capital budget of R5.5bn over the medium term.
The Star