The City of Johannesburg proposed an increase in essential-services tariffs on Wednesday in a move the Anti-Privatisation Forum labelled ”the latest salvo against the poor”.
The city cited increased input costs of 22% in bulk purchase costs from the Eskom and Kelvin power stations.
It has proposed that City Power increase tariffs based on consumer price inflation minus mortgage costs (CPIX) for low consumption users — between 100 kilowatt hours (kWh) and 300kWh — and an increase of between 19% and 23% for large power users.
The city also proposed a 23% increase on winter tariffs for residents and businesses who are large consumers and who are part of a seasonal tariff scheme.
It would decrease the free electricity benefit to households not on the indigent register and increase the free basic electricity allocation to indigent households from 50kWh to 100kWh per month.
City spokesperson Virgil James said that if they were not on the register, the city could not budget for them, and it was assumed they could afford to pay.
Household consumers using less than 15 kilolitres (kl) of water per month will not see an increase for the next financial year.
For those using above 15kl per month, the price will increase by CPIX; above 20kl by CPIX plus 1%; above 30kl by CPIX plus 2%; and above 40kl by CPIX plus 3%.
Commercial and industrial users could see a tariff increase of CPIX plus 2%.
CPIX for February was 9,4%.
The current allocation of free water of 6kl per month could be increased to 10kl for all registered indigent people, and they could also be allocated an emergency water allowance of 4kl per year.
”Residents who can afford to pay should no longer be allocated free basic water,” a statement read.
Those households could be charged R2,50 per unit for the first 6kl and according to the step tariff after that.
Regarding refuse collection, the current structure based on erf size could be changed to a tariff based on property values and the city’s recent valuation process for a new rates system will be applicable.
Users of the services have between March 28 and April 30 to submit comments on the tariffs.
The documents will be available on www.joburg.org.za.
The Anti-Privatisation Forum rejected the proposals, saying they overlooked the harsh realities faced by the poor.
”The tariff hikes proposed by the city are only the latest salvo in the war against the poor. We live in a context where more than 50% of the community is dependant on government grants and more than 40% is unemployed,” the forum said.
”The Anti-Privatisation Forum rejects tariff increases as they overlook these harsh realities and measure need according to profitability.”
Business and the public are still waiting to see whether Eskom will be granted permission to impose a 53% tariff increase by the National Electricity Regulator of South Africa.
Eskom was recently granted the go-ahead for a 14% increase to cope with increasing infrastructure demands, amid ongoing rostered power cuts. — Sapa