Outcry over City’s proposed tariff hikes

HUNDREDS of Capetonians have rejected the City’s 4% tariff and rates increases which came into effect on July 1. This after 733 residents objected to the proposed increases during the public participation process of the City’s 2020/21 budget.

According to a report tabled at council, 27.15% of the comments received were objections to the increase of water and electricity tariffs.

Participants said that there should be no increases in light of the financial challenges imposed on residents due to the Covid-19 pandemic and the lockdown.

They also proposed that the City consider providing relief to pensioners and those who were already battling financially pre-pandemic.

Objections were received against the different levies associated with the 15mm and 25mm water pipes, as well as to the reselling of electricity by the City for profit, stating that the City purchases electricity at an affordable rate and resells it at an exorbitant one.

Residents felt that the increase in the electricity rate doesn’t guarantee an uninterrupted supply of electricity.

July accounts show conservative rates and tariff increases which include rates increased by 4%, electricity increased by 4.8%, water and sanitation increased by 4.5%, and refuse removal increased by 3.5%.

The City said it is dependent on the revenue from rates and services to fund the delivery of water, sanitation, electricity, clinics, traffic lights and fire service, among others.

“The budget does not cater for our poor communities and it remains unaffordable for many; the City is milking our poor communities and even without Covid-19 it increases the burden on people who lost their jobs,” said Mitchells Plain United Residents Association deputy chairperson

Michael Jacobs.

“Apart from the fact that the City is being heartless, they are trying to bleed rocks, and I can guarantee you they are not going to be able to get this money because people don’t have it.”

Justice 4 Cape Town spokesperson Ghalema Easton added: “How do they expect people to pay these increases in the time we are facing a global health pandemic?”

Mayco member for finance and deputy mayor Ian Neilson said: “We have taken note of the ability of people to pay and the impact of the current conditions. Due to the need to still have the income necessary to deliver services, we had to focus our efforts on the most vulnerable and those who have been most hit by the crisis.

“We thus focus on the individual circumstances of a resident and our approach is targeted to ensure sustainability. We have increased the indigent limit and allowed people to qualify as soon as possible.

“Together with the very extensive indigent package, rebates for pensioners and disabled people, Lifeline electricity tariffs, we have gone as far as possible that is affordable, without placing too large a burden on the other ratepayers whose payments fund these benefits.”

“

How do they expect people to pay in a pandemic? Ghalema Easton JUSTICE 4 CAPE TOWN SPOKESPERSON