GCTCA responds to city’s exorbitant proposed tariff increases

Len Swimmer
Deputy Chairman
Greater Cape Town Civic Alliance

In case the already heavily over burdened ratepayer’s in Cape Town didn’t know it, they are going to be hit very hard with increases above the inflation rate. We query why the City of Cape Town have such a bloated civil service and why they are paying these officials such huge salaries – much more than many of them would or could ever earn in the Private Sector? We also query the constant use of consultants at huge expense to the rate paying public?

The proposed tariffs for 2015/16 completely ignore the current inflation rate, and expected short term possible increases. It shows scant regard for affordability of the Ratepayers.

The proposed increases are, in all categories, more than double the current inflation rate.

Details of increased tariffs 2015 to 2016 are the following:

  • Water (single residential) +11%
  • Sewerage (single residential) +11%
  • Electricity (Domestic) +14.5%
  • Refuse (240 liter w/bin) +8.33%
  • Property Rates > R200k +10.83%

The Official headline CPI (for all urban areas) annual inflation rate in February 2015 was 3,9%.

Nersa approved Eskom increase of 12.69% as from 01 July for local authorities.

The various laws regulating local government demands, that any and all relevant objections to a proposed budget, must be carefully considered and discussed in a full council meeting, which should in turn make recommendations to the mayor regarding revisions or changes to the budget.

The Greater Cape Town Civic Alliance (GCTCA) vigorously objects to the exorbitant proposed increases and demands that it be reduced to be in line with the current inflation rate of less than 5%. We also suggest that in view of the already approved Eskom increase, the City of Cape Town should REDUCE its CURRENT 10% SURCHARGE on electricity to alleviate the heavy impact thereof on its residents.

Finally, we demand that the City of Cape Town cut its grandiose coat according to the cloth that hard pressed residents can afford.

The proposed 2015/16 IDP/Budget for the City of Cape Town is open for public comment

The relevant documents can be accessed at the following link:


Written objections should be addressed to: The City Manager, 2015/16 IDP/Budget,
5th Floor, Podium Civic Centre, Cape Town 8001; or
Private Bag X9181, Cape Town 8000; or
Fax: 021 400 1332
E-mail: city.manager@capetown.gov.za

Any person wishing to object to the proposed 2015/16 IDP/Budget for the City of Cape Town must do so in writing to the above address or submit objections to their local subcouncil office by no later than 16:30 on Thursday 30 April 2015.


What’s good for the goose?

FRIDAY APR 10, 2015
The Star

Joburg property owners ‘must object to steep hike in tariffs’

The City of Joburg has tabled proposed tariff increases for 2015/16 and residents have until May 24 to object.

The DA has appealed to residents to lodge their objections to the increased tariffs.

Councillor Ralf Bittkau says the mayor and his team have gone along with any increases levied on them by suppliers and passed these on to the residents of Joburg.

Increases in electricity are 12.1 percent, water an average 14.5 percent, sanitation 15 percent and solid-waste removal 8 percent.

“As was seen during the course of last year, Rand Water was failing and thus they opted to increase their tariffs by 14.5 percent.

“We all experience, on a daily basis, the failure of Eskom and hence their increase of 12.36 percent,” he said.

And, to make things worse, City Power loses almost 30 percent due to technical and nontechnical items, such as electricity theft through illegal connections.

Joburg water loses between 37 percent and 40 percent.

Over and above this, the revenue collection by both entities was far below the target of 95 percent, he said.

“The mayor and his executive would have done well to limit the increases and ensure that City Power and Joburg Water knuckled down and addressed their losses in an aggressive manner and made up the shortfalls like that.

“Furthermore, the revenue collection department, through ensuring that correct invoices went out, could easily improve on their collection rate.”

However, said Bittkau, these were only proposed tariff increases.

It was time for citizens to make their voices heard and objected to these high increases, he said.


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