Delivering the City’s annual Budget the Member of the Mayoral Committee for Finance, Councillor Geoffrey Makhubo said the increase in electricity tariffs has, on average, been kept lower than the prices determined by the bulk supplier, Eskom.
He said the City’s tariff policy is based on the principles of financial sustainability, environmental considerations and the affordability of services for residents and clients. The City has to balance the tension between affordability and the requirement that tariffs reflect the cost for the delivery of services such as water, sanitation, electricity and refuse removal.
When rates and tariffs are determined, the City takes into account local economic conditions, input costs and the affordability of services while looking after the particular interests of poor households.
Johannesburg has introduced a step tariff for electricity services which implies that the more electricity consumers use, the more they will pay. The aim is to reduce electricity and benefit lower consumption users.
Mr Makhubo said the 7.05% average increase for electricity in the coming year is lower than the tariff increase of 7.3% announced by Eskom and electricity regulator, NERSA. This will provide the City with revenue of R13.6 billion.
Registered indigents will continue to receive free electricity, free water and free sanitation in terms of Johannesburg’s Extended Social Package.
The tariffs for waste removal services will increase by 6% for domestic households and 8% for businesses and commercial customers. The proposed increases will generate sufficient revenue to ensure Pikitup can sustain its current service levels and extend services to new areas and housing developments, said MMC Makhubo.
2014 Budget Speech
2014 Media Briefing Statement