Residents of South Africa's key metropolitan areas are bracing for substantial hikes in municipal tariffs come July 1, 2024, with eThekwini residents set to bear the brunt yet again.
Proposed draft budgets for the 2024/25 fiscal year from major metros indicate significant tariff increases across various services, including property rates, electricity, water, sanitation, and refuse removal.
Municipal authorities cite above-inflation escalations in Eskom, water board, and salary expenses as drivers behind these unavoidable tariff hikes.
Of particular concern are the proposed increases in eThekwini, where residents may face substantial financial strain.
The steep tariff hikes, especially for electricity, are likely to exacerbate existing concerns over service delivery challenges.
While electricity hikes align closely with Eskom's approved 12.72% increase, cities like Nelson Mandela Bay and eThekwini are proposing even higher escalations.
Nelson Mandela Bay, for instance, is considering a 15.7% electricity tariff hike, surpassing Eskom's municipal hike, while eThekwini eyes a notable 14% increase.
eThekwini Mayor Mxolisi Kaunda acknowledges that these hikes exceed inflation but deems them necessary given the economic climate.
Municipality | Rates | Electricity | Water | Sanitation | Refuse |
City of Joburg | 4.8% | 10.7% | 7.7% | 7.7% | 5.9% |
eThekwini | 7.9% | 14% | 14.9% | 12.9% | 8.0% |
City of Cape Town | 5.7% | 11.8% | 6.8% | 6.8% | 5.7% |
Nelson Mandela Bay | 5.0% | 15.7% | 6.0% | 6.0% | 6.0% |
Nevertheless, with double-digit increases looming across multiple services, the eThekwini Ratepayers’ and Residents’ Association (ERRA) urges rejection of the hikes, citing poor services and crumbling infrastructure.
In contrast, the City of Cape Town aims to cushion its residents by reducing Eskom's municipal rate increase and proposing a 5.7% increase in property rates, albeit a stark shift from last year's decrease.
The proposed tariff adjustments across major metros, including Johannesburg, will undergo public consultation and scrutiny before being finalised.
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