Cape Town - The City has denied claims it was ignoring the plight of the poorest communities with its most recent rate increases.
This as the Lotus River, Grassy Park Ratepayers and residents Civic Association (Logra Civic) called on the City to not be “heartless” and to “consider the financial hardships they bring on the people”.
Logra Civic in a said ratepayers and residents were reeling from the shock as they contemplate the increases in their municipal bill.
“Of great concern is the extra charges on water and electricity levied by the City. Residents and ratepayers consider these ‘home user charge’ on electricity and ‘fixed basic charge’ on water, which also increased, totally unacceptable especially in the crippling economic climate.
“These add an extra R300 to the municipal bill. Logra notes that the charges for electricity and water is already unacceptably high and these extra charges is adding insult to injury. Fuel prices increased. The cost of food stuff has gone up. All these increases has an effect on the cost of living. This will bring untold hardships to the residents especially our senior citizens. With the high unemployment rate, people will not be able to afford these charges,” a statement read.
“We demand that these extra charges be scrapped. We suspect it is a way of making up revenue shortfalls occasioned by the power outages and the household savings on water as demanded by the City. We urge the City to do right by its people. Poor people’s economic tolerance is at a breaking point… Don’t make poor people pay for obnoxiously high salaries and perks,” they added.
Mayco member for Finance, Siseko Mbandezi, said the suspicions raised by Logra Civic were incorrect and that the recent annual increase in tariffs is required to cover the cost of providing services such as water and electricity.
“Customers are likely to see increases in their bills due to the annual tariff increases as well as higher winter electricity usage. It is important to note that customers can reduce the costs of utility services by using less…The City’s budget for 2022/23, including the tariff increases, underwent a public participation process ahead of it being approved by Council.
“The City’s tariff and rates increases are set at the minimum of what is required to continue and expand service provision for the people of Cape Town, and especially to enhance energy and water and sanitation resilience,” said Mbandezi.
He noted that with 5.2% rates increase, Cape Town had the lowest rates of the biggest five metros in South Africa and a 9.5% electricity increase which is “Eskom influenced”.
Other increases are water at 6.5%, sanitation at 6.5% and refuse removal at 5%.
“Tariff income for energy is also used to maintain the Steenbras plant, which helps to protect City customers from some of the worst impacts of Eskom’s load shedding. Affordability for customers is always top of mind but is balanced with what is required to cater to the existing and growing service delivery needs of Cape Town.
“No profit is planned for and all income goes into service delivery. Residents who are struggling should get in touch with the City. Assistance is available in the form of rebates or payment arrangements,” said Mbandezi.
Cape Times