NERSA has recently approved and allowed a tariff increase this year, 2019/2020. Eskom direct customers having an increase of 13.87% and municipal clients having an increase of 15.63% effective as of the first of July, 2019. However, these are not the only increases residents should be aware about.
Major cities around South Africa has tabled their budgets. We’ll be comparing how 3 of South Africa’s biggest cities fair in terms of the various increases residents can expect going forward:
These three cities has proposed tariff structures in which they absorb some of the weight put down by the July tariff increase. In the City of Johannesburg, residents can expect an increase of 12.2%, Durban residents can expect an 14.4% increase. While Cape Town proposed a “controlled increase” model where residents will cough up a mere 8.8% more, with the city proposing to subsidize the rest, paying 15.63% more for bulk electricity.
There are also an expected increase in property rates across these 3 cities. Increases for Durban property rates are set to be tabled for 6.9% while the City of Johannesburg residents can expect an increase in property rates of 5.5%. The City of Cape Town has stepped rates which is dependent on property value.
The rates for the use of water is also set for an increase. The price of water in Durban is proposed to be increased by 15% for residential users and 15.5% for businesses. The City of Cape Town proposes and increase of 9% while the City of Johannesburg proposed an increase of 9.9%
In Durban, residents can expect to pay 9.9% more to have the refuse removed. Johannesburg proposed an increase of 7%, meanwhile in Cape Town, they’ve actually proposed a decrease, down to 5.0% from 5.7%
Higher food, fuel and electricity prices are set to make it a really tough year consumers. Important to bare in mind, these are mere proposals under scrutiny, included in their budget drafts for the year to come.