Joburg tariff increases heavily influenced by Eskom’s huge tariff hike

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City of Johannesburg mayoral committee member for finance Dada Morero said the Eskom tariff increase is the main reason for the new rates after a whopping 18.65% increase, way above inflation, was allowed by the National Energy Regulator of SA (Nersa) for the new financial year.

Morero held a tariff workshop on Wednesday to expand on how the new rates were calculated to meet the R80.9 billion 2023/24 budget.

There will be an increase in tariffs on crucial services, including:

  • Electricity at 14.97%
  • Property rates at 2%
  • Water at 9.3%
  • Sanitation at 9.3% 
  • Refuse at 7%

Morero said the energy increase affects most, if not all, of the services. 

Water, for example, needs to be pumped to reservoirs and residents. As the electricity goes up, Joburg Water must pay more for power. As the power becomes more unreliable, the entity must invest in alternative infrastructure to keep the service going.  

Morero said the City understood that residents were under strain because of the financial crunch, so the budget allowed for some “cushioning”.

Read the full article on News24 here.

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