New City tarrifs proposed

Residents and other stakeholders have been invited to comment on proposed tariff increases which will affect the cost of water, electricity and refuse removal.
PUBLIC comment is sought on proposed amendments to the municipal tariff structure for the fiscal year starting on Sunday, 1 July.

LandfillsRefuse removal will be charged based on property valueCouncil has approved the draft municipal tariffs for public comment and all residents, businesses, institutions and affected stakeholders have until the end of the month to participate. The Municipal Systems Act requires the municipality to review its tariffs annually and involve the public in deciding on amendments to existing tariffs.

Written submissions on the proposed increases should be addressed to the City’s customer service centres across all regions. Alternatively, residents can check the City’s website for more information.

In revising its tariffs for water, electricity and refuse removal, the City takes into account current food and fuel prices, which have soared by a sky-high margin. The annual tariff determination also considers economic trends, user consumption, affordability and international best practices.

Johannesburg is grappling with the likelihood of increasing demand on limited and fast-depleting resources. The supply of national electricity is constrained; there is a projected water shortage and landfill space has decreased.

Consumption behaviour had to change to ensure resource conservation and avoid exorbitant charges. The City warned that tariffs will be determined on consumption and heavy users will be penalised.

The City has had an increase of more than 14.88 percent in electricity input costs as a result of bulk purchase costs from Eskom, the Kelvin Power Station and the impact of the decision by the National Energy Regulator of South Africa (Nersa) and Eskom to hike rates by 16 percent.

As a result, an overall 14 percent increase in electricity tariffs can be expected. City Power increases are based on Nersa guidelines. The 14 percent tariff increase required by City Power is three points above Nersa guidelines of an 11.03 percent tariff increase for municipalities.

The municipality said it will continue to assist its registered indigents by offering free basic electricity per household.

Delivering his 2012/13 Budget in February, Finance Minister Pravin Gordhan said the levy on electricity generated from non-renewable sources would increase by 1c/kWh from 1 July to replace the current funding mechanism for energy efficiency initiatives such as the solar water geyser programme.

The projected shortage of water is not good news for residentsThe projected shortage of water is not good news for residentsThe City said waste removal tariffs will be charged based on a property’s value, with three different property value thresholds proposed – properties valued at less than R700 000, business and higher-valued properties.

To improve hygiene in public spaces and enforce by-laws, an additional city cleaning levy will be billed to all households and businesses.

“The proposed increase in tariffs seeks to ensure that our tariffs are market-related with minimum cost escalation,” said Trevor Fowler, Joburg city manager.

The proposed draft amendment tariff structure takes into account all City-rendered services, including arts, culture and heritage services, cemeteries and crematoria, parks, open spaces and nature reserves, council rental stock, emergency management services, environmental health services, library and information services, Metrobus fares, by-laws, Rea Vaya fares, refuse removal, sport facilities, recreation centres, the Johannesburg Zoo, as well as water services, sewerage and sanitation, to list a few.

The City believes that the current tariff structure is fair and the intention is to support consumers in their efforts to adjust their consumption and utilise resources responsibly. The new tariff structure comes into effect on Sunday, 1 July.

“Copies of the proposed tariffs will be available for inspection and scrutiny,” Fowler said.

The public has until Monday, 30 April to comment on the proposed tariffs for the 2011/2012 fiscal year. Written submissions can be addressed to the City’s customer service centres across all regions, including 15th Road, Randjies Park, Midrand; 35 Symons Road, Auckland Park; Roodepoort Civic Centre; Jabulani Civic Centre; Sanpark Building, 24 Fredman Drive, Sandton; CJ Cronje Building, 80 Loveday Street; Lenasia South East Office; and the Metro Centre in Braamfontein.

Alternatively residents can view the proposed tariffs online. Comments may also be emailed to mphomap@joburg.org.za, lennettef@joburg.org.za or pumlam@joburg.org.za or faxed to 011 358 3140 or posted to P O Box 1049, Johannesburg, 2000.