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JHB residents face higher rates, power costs

The city's MMC for finance delivered his budget speech on Tuesday.

Water generic. Picture: Free Images.

JOHANNESBURG - Johannesburg's Finance MMC Geoffrey Makhubo has announced a proposed six percent hike in property rates and 12.1 percent increase in electricity tariffs.

Makhubo delivered the city's budget speech for the 2015/2016 financial year in Sandton on Tuesday.

The city is asking for an overall annual budget of over R52 billion.

Property rates and electricity tariffs are expected to increase by six and 12 percent respectively.

Water and sewerage tariffs are expected to increase by 14 percent while refuse removal is due to go up by eight percent.

But Makhubo says there is some relief for consumers; pensioners with a gross monthly income of less than R7,850 will receive 100 percent rebates on property rates.

Also all households within the city will receive 6 kilolitres of free water every month.

Meanwhile, the city's health department has been allocated R743 million and city power will be given over R15 billion for the next financial year.

BASIC SERVICE COSTS TO GO UP BY JULY

Basic service costs are expected to skyrocket from as of 1 July, with the City of Joburg urging residents to take steps to reduce their monthly bills.

Makhubo says proposed increases take a number of internal and external factors into account to ensure the city can raise the required revenue.

"The proposed increase is within the set inflation target."

The city says there are ways to reduce monthly bills, and it will continue to work with communities, but it appears the more you use, the more you'll pay concept will apply.

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