Ekurhuleni draft tariff increases 2020

The City of Ekurhuleni has invited public comment on the draft 2020/21 IDP, Medium Term Budget, and Tariff increases.

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Water

Rand Water indicated a tariff increase of 15 percent, which is also the same as the 2019/20 increase. This increase must still be approved at Cabinet level as it forms part of administered prices.

Sanitation

ERWAT proposes a tariff increase of 11 percent on sanitation, which is also the same as last year. This is based on the increase in input costs such as fuel and chemicals and to address backlogs on sewer network maintenance.

Refuse Removal

As in the previous year, the refuse removal tariff increase is proposed to remain the same at 7.5 percent for all users. This is largely based on the increase of the main cost drivers of the service such as fuel and lubricants and vehicle operating costs.

The 7.5 percent increase does not take into consideration costs such as provision for doubtful debts and depreciation charges. Substantial tariff increases would be required to fully fund the service.

Electricity

The electricity tariff increases are based on NERSA approval of Eskom application. At the moment the increase is 6.9 percent for bulk purchases from Eskom and 6.6 percent for sales to customers.

These figures are subject to NERSA’s final approval.

Bus Tariff

the municipal bus services tariff increases. This increases by an average of 3.85 percent and 4.35 percent. This is less than the CPI of 4.5 percent.