Johannesburg ratepayers might have to dig even deeper into their already hollow pockets from July 1 if the proposed water, electricity, refuse and property rate increases are approved.
The municipality has proposed tariff hikes of 9.75% for water and sanitation, 9.61% for electricity, 5% for refuse and 4.85% for property rates.
The figures were contained in the city's draft medium-term operating budget for the 2022/2023 financial year.
The proposed electricity increase of 9.61% is subject to approval by the National Energy Regulator of SA (Nersa).
It is worth noting that while there would be an increase in electricity prices, the proposed increase is less than the 14.59% electricity increase approved during the 2021/22 financial year.
The document is also subject to a public participation process before being brought back to council in May for approval before the start of the new financial year on July 1.
In a report to council, Ntuthuzelo April from the city's budget office wrote that the city's operating revenue budget for 2022/23 was about R70.4bn, adding that operating expenditure was R69.4bn.
April wrote that revenue would be increasing by 7.7% and expenditure by 8.4% over the 2021/22 financial year.
“The increase of 7.7% in total revenue is made up of the 4.8% increase in property rates, 9.7% in electricity revenue, 9.7% increase in water revenue, 9.7% increase in sanitation revenue, 3.5% increase in refuse, 5.3% increase in rental of facilities, -0.7% increase in interest external investments, -3.2% increase in interest outstanding debtors, 4.8% increase in fines, 5% increase in licences and permits, 4.9% increase in agency services, 6.8% increase in transfers received and 9.7% increase in other revenue.”
Residents of Johannesburg have expressed their heartache at the proposed tariff increases, saying it will make their lives even more difficult.
South Africans are already expected to pay more for fuel due to the war in Ukraine; Since the war began, local fuel prices have risen to more than R21 per litre for the first time in March. Sunflower prices are also on the rise.
Rose Chauke, who owns a flat in Fleurhof, southern Johannesburg, said her finances were already under pressure.
If the tariffs are implemented her electricity bill would increase from R1,000 to R1,096.1 per month. Her water bill will go up from R300 to R329.25. Her refuse will surge from R250 to R262.5.
“I live in a complex. I still have to pay levies which deal with gardening services and security. These cost me about R700. It is going to be very difficult for me as a parent. I spend R3,000 on groceries and R1,500 on my transport to work.
“I still have to spend another R500 for my son’s transport. How do authorities expect us to live? Our salaries are not increasing while the cost of living keeps on escalating. It is not right at all,” Chauke said.
She works in one of the clothing stores in Ekurhuleni earning about R9,000.
Tshepo Mokoena of Malvern, eastern Johannesburg, said implementation of such tariffs will make it difficult for everyone.
Mokoena’s electricity bill will rise from R1,500 a month to R1,644. Water will swell from R1,700 to R1,865.75 and refuse will surge from R700 to R735.
Mokoena earns about R7,500 a month and still has to provide for his family. “There is still school fees and associated costs. There is groceries for the family that one has to buy. Now petrol has gone up so many times.
“Government is really making things difficult for us. People are going to suffer with these kinds of tariffs. Government knows that food has gone up because of the petrol prices. It is really going to be difficult to live in this country,” he said.
Thuso Diale lives in Meredale, southern Johannesburg, and said he spends a total of R1,400 on all his rates and taxes. These fluctuated depending on monthly usage.
“We are financially pressed with everything going up and the petrol price increases. I used to spend about R550 for petrol and now I have to fill my car on R700. Having these municipal increases will continue to put more pressure on us as a family.
“We took our children from private school to public school because we could no longer afford the exorbitant fees,” he said.
Mokoena works for one of the municipalities in Gauteng and earns about R20,000.
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