Electricity tariffs are set to increase in cities around the country from tomorrow and Joburg is hardest hit with a rise of 27,7% followed by Mangaung at 26,5% in terms of figures released by the various metropolitan councils this week.
In Cape Town, the price of electricity goes up by 20% while in eThekwini it will rise by 19,8% and in Nelson Mandela Bay it is up by 22%. Tariffs for businesses increase by between 20% and 30% in the metropolitan regions.
Joburg’s executive mayor, Parks Tau, says that the increase is largely due to a steep rise in tariffs charged to it by Eskom. Property rates in the city will go up by 6,7% and water and sanitation charges rise by 14%. Refuse removal costs increase by 6,7%.
In Mangaung, other services have risen by between 10% and 12%.
The price rises come in the wake of a report by the Auditor-General that shows that misappropriation of municipal funds had risen sharply in the past year and that unauthorised, irregular, fruitless and wasteful expenditure rose by 77% for the financial year to the end of June 2010.
Auditor-General Terence Nombembe says that Cape Town was the only metropolitan council to receive a clean, unqualified audit for the year. Three councils, Ekurhuleni, Tshwane and eThekwini had received unqualified audits with findings while the City of Joburg received a qualified audit report.
He said the problems being faced by Johannesburg were due, in part, to the phased migration to the new Phakama billing system that had created billing chaos for many thousands of households in the city, which had received incorrect bills, sometimes running into millions of rands.
Other municipalities that received a clean audit from the Auditor-General were Ehlanzeni, Steve Tshwete and Victor Khanye municipalities in Mpumalanga; Metsweding in Gauteng; Francis Baard in the Northern Cape and Fetakgomo in Limpopo.
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Your article refers. It did not specify but in Johannesburg it's going to be 35% for residential properties and 28% for businesses - that's just electricity. All the other tariffs are up as stated. Just WHAT is Eskom trying to do to everyone? I am a pensioner on a fixed pension. I don't get 35% increase every year. I wish I did. Just HOW are we to cope with their greed, avarice, paying one financial director R4.9-million a year just in salary? For what? I foresee that the government is sowing dissention, revolt, protest action, and of course many more people who simply will refuse to pay!- Ian
This is going to kill us, already the rates are steep and my water and lights account is R2500.00 a month, I cannot afford it and am already in arrears, I put my property in the market on Saturday but are still waiting for the agents to get back to me. This is extremely bad news for the guy on the street. - Tracey
In our municipality, Buffalo City, the situation is even worse in that housing associations are being levied commercial rates, same as any commercial landlord, yet we are expected to ensure that rentals are affordable. The provision of affordable housing is the competency of a local municipality. Meaning that we are effectively doing the job of the municipality yet it does not bother them that they charge commercial tariffs, which by the way, we in-turn have to pass them over to the paying tenants. This adds to the cost of accommodation which does not make it affordable.
Unless authorities change their stance and make the provision of affordable rental housing a priority, things such as the current exorbitant electricity hikes and application of commercial tariffs on property rates poses the biggest threat to the sustainable growth of the social housing sector in South Africa and Buffalo City in particular. - Lawrence Motebang Ramashamole
If Eskom was constructive about reducing energy consumption and of ways to avoid these gross price hikes, they would enforce Earth Hour once a week - or go back to scheduled downtimes. I would rather, any day, be without electricity for an hour or two than pay these outrageous amounts. I have already cut back as far as I can - the geyser goes on for an hour a day, heaters have been reduced to two rooms, and hot water is kept in a flask to avoid reboiling the kettle for every cup of tea. Almost all my lights are low-energy (which I don't like because they produce toxic waste) and lights are religiously switched off when not in use. All pilot lights that can possibly be off, are off..............what more can I do? - Helene
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