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Due to public outcry, the City of Joburg has taken a decision to withdraw the proposed tariffs for pre-paid electricity. Other tariffs have been reduced.
Image via: Adobe Stock
The City of Johannesburg on Thursday 9 July 2020 presented the 2020/21 to 2022/23 Medium Term Budget. In doing so, the City of Joburg decided to withdraw the proposed fixed charges of R200 for residential and R400 for commercial pre-paid electricity. This follows public concerns and suggestions expressed by Johannesburg residents to the proposed tariffs.
The Johannesburg Member of Mayoral Committee (MMC) for Finance Jolidee Matongo said the tariff setting process, which was presented through a public participation engagement, took into consideration the likely impact the initially proposed tariff increases had on the local economy, businesses and residents.
Following public outcry, the City of Joburg took a decision to withdraw the proposed fixed charges of R200 for residential and R400 for commercial pre-paid electricity.
The property rates tariff will also be reduced from the proposed 4.9% to 4%, the water tariff will also drop from the initial proposal of 8.6% to 6.6%, and the electricity tariff goes down from 8.10% to 6.23%. Meanwhile, the business rates ratio will be reduced from 1:2.6 to 1:2.5.
“In addition to these tariff relief interventions, the pensioner income qualifying criteria has increased by 6%. This means a pensioner with a property value of below R2.5 million and an income of below R10 338 for the lower limit or below R17 719 for the upper limit, will receive a 100% rebate on their rates,” said Matongo.
“This effectively means an increased number of pensioners will now qualify for the City’s rebates,” he said.
Besides the reduction of certain tariffs, here are some of the allocations that were announced in the mid-term budget.