Joyless July looms for Johannesburg

Johannesburg - Joburg residents, brace yourselves.

From Wednesday, you face not only massive municipal tariff hikes, but petrol increases as well.

Petrol prices are set to increase by between 41c and 44c a litre.

Joburg municipal rates rise by, on average, 12.19 percent for electricity, 14 percent for water, 6 percent for rates and 8 percent for refuse removal.

However, because water and electricity rates are on a stepped scale, the more people use, the more they will be charged.

But residents who have smart meters will also, from July 1, be able to register for the new time-of-use tariffs.

By registering, electricity users using power during off-peak times will be charged less than prescribed tariffs. However, should they use power during peak hours, they could face paying up to 2,5 times more.

Peak times are between 7am and 10am and 6pm and 8pm.

The intention, said City Power, is to incentivise residential customers, through tariff signals, to reduce consumption during peak periods.

The first 6 kilolitres of water is free for all households, and the next four will cost R6.80 a kilolitre, but at the top of the scale, the charge is R28.08 a kilolitre for use over 40 kilolitres.

A middle-income household, described as having a house valued at R700 000 and using 1 000kWh of electricity and 30 kilolitres of water a month, will see its monthly municipal bill rise from R2 670 a month to R2 985 – a rise of nearly 12 percent.

An “affordable” household – a property valued at between R500 000 and R700 000, using 500kWh of electricity and 25 kilolitres of water a month – will now see its municipal bill increase from R1 645 a month to R1 835 – also an increase of nearly 12 percent.

An indigent household – property valued at R300 000, using 350kWh of electricity and 20 kilolitres of water a month, including the free 50kWh of electricity and 6 kilolitres of water – can expect the bill to increase from R475 a month to R515 – an increase of about 8.5 percent.

Adding to the financial pinch is an increase in fuel prices, the third increase since the beginning of the year, with petrol having increased by R1.62 in April and 47c a litre in June. This is due to the weakening of the rand against the US dollar.

anna.cox@inl.co.za

The Star