Cape Town ratepayers are faced with a triple blow as water, sanitation and electricity increases are due to go up by 10 percent and 25 percent respectively tomorrow. All City of Cape Town electricity users will pay 24.6 percent more for electricity from tomorrow when the new 2010/2011 budget comes into effect.
The city said the tariff increase was necessary for “essential operational requirements” (including informal settlements), water saving projects and maintenance of existing infrastructure. The need to increase electricity tariffs was due to Eskom’s 29 percent increase on bulk tariffs. The Eskom increase, and the money needed for salaries and wages, repairs, maintenance and upgrading of the electricity network, meant the city needed to increase its electricity tariffs by an average of 24.6 percent.
- The Domestic High Tariff will be charged for residents who use more than 1 500kWh a month. This was previously 800kWh a month, but had been increased to 1 500kWh a month. This is part of a phasing-out process expected to be completed in two years.
- Residents who use more than 1 500kWh a month will be charged an energy charge of 91.17c/kWh, including VAT, and a service charge of R7.50 a day. Deputy mayor Ian Neilson acknowledged the increases would have a detrimental effect on consumers, but were a result of heavy increases in costs and the need to increase services.
- A household will pay on average 10 percent more in general water tariffs, including the bulk water tariff. The domestic water tariffs will be increased by 9 percent.
- The free water component (6kl water a month for all customers and an extra 4.5kl for indigent customers) remains unchanged.
Source: Cape Times
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