The city of Tshwane announced the proposed tariff and tariff increases in its draft Medium-Term Revenue and Expenditure Framework 2021/22 – which will result in price increases for electricity, water and other services in the coming months.
Executive Mayor Randall Williams said the city has tried to contain the increases as best it can, but given unfavorable economic conditions across the country, price increases above inflation will not could be avoided.
The only exception to this is the home ownership rate, which will see the smallest increase in the city’s history, he said.
“The city has made a firm decision to keep the increases under our control as low as possible. An increase of only 2% is proposed for land rates, while the garbage removal fee will increase by 4.1%, ”he said.
However, large charges are out of the city’s hands, such as the 15.63% increase in the cost of wholesale purchases from Eskom, which took effect on April 1, 2021.
“The city has no choice but to pass this cost increase on to customers, and a 14.59% rate increase effective July 1, 2021 is being proposed,” said Williams.
The city is also tied by the tariff increase for massive water purchases from Rand Water, which will see prices rise by 8%, while sanitation costs will rise by 10%.
Williams said citizens need to manage and track their water and electricity use to reduce the effects of price hikes.
Price increase 2021/2022
- Electricity: + 14.59%
- Sanitation: + 10%
- Water: + 8%
- Elimination of refusals: + 4.1%
- Ownership rate: + 2%
Headline inflation in February was 2.9%.
Read: Electricity and water prices expected to rise in Johannesburg