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2011-03-31: Residents invited to comment on City's tariffs for water, electricity and waste removal |
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31 March 2011 |
ALL residents, business, institutions and affected stakeholders of Johannesburg have a month long opportunity to comment on the new draft tariffs that have been approved for public comment.
Public participation begins on 1 April and will end on 30 April 2011 to allow everyone to submit written comment on the draft budget and approved tariffs for the 2011/12 financial years. These documents are available from customer service centres in the Regions and the City website www.joburg.org.za.
Among the other proposals from the City that will form the basis of the public participation are:
Johannesburg Water:
An average tariff increase of 14 per cent from 1 July 2011 for water is proposed. This is based on input cost assumptions of 12.1 per cent increase in the cost of bulk water (Rand Water).
A summary of the proposed tariffs for households (residential) and non-residential are as follows:
| 0 to 6kl |
Free |
| Greater than 6 up to 10kl |
6.7% |
| Greater than 10 up to 15kl |
8.7% |
| Greater than 15 up to 20kl |
10.7% |
| Greater than 20 up to 30kl |
12.7% |
| Greater than 30 up to 40kl |
14.0% |
| In excess of 40kl |
14.5% |
| Institutional and commercial up to 200kl |
14.0% |
| More than 200kl |
15.0% |
| Others |
14.0% |
In addition 6 kl water per 30-day period will again be granted free of charge to all residents.
"There is still an urgent need for consumers to reassess their consumption of scarce natural resources and to make a contribution to the global initiatives on climate change" says Mr Gerald Dumas acting executive director for Finance.
Proposed Private Dwelling Domestic Sanitation Tariffs
| ERF Size (m²) |
2010/11
Tariff
(R/erf/month) |
2011/12
Tariff
(R/erf/month) |
| Up to and including 300m² |
R75.61 |
R86.20 |
| Larger than 300m² to 1000m² |
R147.19 |
R167.80 |
| Larger than 1000m² to 2000m² |
R222.68 |
R253.86 |
| Larger than 2000m² |
R320.85 |
R365.77 |
City Power:
NERSA has announced the revised bulk electricity pricing structure. A 26.7 per cent increase in the Eskom bulk electricity tariff to municipalities will be effective from 1 July 2011. Considering the Eskom increases, the City is proposing an average tariff increase of 27.7% for electricity effective from 1 July 2011.
Life line tariff
The proposed increase on this tariff is 8%, which is in line with the NERSA proposals for low consumption customers.
Single and three phase Tariff
The proposed energy increase is 16%, while the service charge increases by 13%. This is to make prepaid cheaper than the conventional, in line with the strategy to be a prepaid City.
Prepaid
Due to the drive to bring citizens of the City of Johannesburg to prepayment metering system, the tariff increase is kept very low at 5%.
Agriculture
Proposed increase is 30%.
Business and Industrial
An increase of 31% & 29% respectively is proposed. This tariff category subsidizes the life line and portion of single phase and three phase residential customers.
Pikitup – refuse collection
Refuse removal is charged based on property value. A tariff increase of 6.7% across all residential property values is proposed from 1 July 2011.
Indigent households and all properties valued below the threshold of R150, 000 will continue to receive free basic services.
| Description |
2010/11
(Current) |
2011/12 |
Rand value
increase |
% increase |
| From R150 001 to R300 000 |
R 73.00 |
R 77.89 |
4.89 |
6.7 |
| From R300 001 to R500 000 |
R 85.00 |
R 90.70 |
5.70 |
6.7 |
| From R500 001 to R700 000 |
R 97.00 |
R 103.50 |
6.50 |
6.7 |
| From R700 001 to R1 500 000 |
R 128.00 |
R 136.58 |
8.58 |
6.7 |
| More than R1 500 000 |
R 178.00 |
R 189.93 |
11.93 |
6.7 |
Proposed rates to be levied for the 2011/12 financial year
The categories of rateable properties for purposes of levying rates and the proposed rates for 2011/12 financial year based on a 6.7% increase from 1 July 2011 are:
| Category |
Ratio
2010/2011 |
Tariff 2010/2011
(Cents in the Rand) |
Ratio
2011/2012 |
Proposed Tariff 2011/2012
(Cents in the Rand) |
% increase |
| Agricultural Holdings |
1 |
0.004928 |
1 |
0.005258 |
6.7% |
| Business |
3.5 |
0.017248 |
3.5 |
0.018404 |
6.7% |
| Business Sectional Title |
3.5 |
0.017248 |
3.5 |
0.018404 |
6.7% |
| Education |
0.25 |
0.001232 |
0.25 |
0.001314 |
6.7% |
| Public Benefit |
0.25 |
0.001232 |
0.25 |
0.001314 |
6.7% |
| Farming land/Property used for bona fide farming |
1 |
0.004928 |
0.25 |
0.001314 |
6.7% |
| Mining |
3.5 |
0.017248 |
3.5 |
0.018404 |
6.7% |
| Multiple purpose |
3.5 |
0.017248 |
3.5 |
0.018404 |
6.7% |
| Municipal Not Rateable |
0 |
0 |
0 |
0 |
6.7% |
| Municipal Rateable |
1.2 |
0.005914 |
1.2 |
0.006310 |
6.7% |
| Public Service Infrastructure |
0 |
0.001232 |
0.25 |
0.001314 |
6.7% |
| Religious |
0 |
0 |
0 |
0 |
6.7% |
| Residential |
1 |
0.004928 |
1 |
0.005258 |
6.7% |
| Sectional Title |
1 |
0.004928 |
1 |
0.005258 |
6.7% |
| State |
1.5 |
0.007392 |
1.5 |
0.007887 |
6.7% |
| Vacant |
4 |
0.019712 |
4 |
0.021033 |
6.7% |
| Residential Property with Consent Use |
2 |
0.009856 |
2 |
0.010516 |
6.7% |
| Public service infrastructure privately owned |
0.25 |
0.001232 |
0.25 |
0.001314 |
6.7% |
| Private open spaces |
0.25 |
0.001232 |
0.25 |
0.001314 |
6.7% |
"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", says Dumas.
Issued by:
Virgil James
Spokesperson
City of Joburg
011 407 7226
082 467 9415
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