Joburg rates: From power to water and property, here's how much more you will pay next week

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Johannesburg's electricity tariff's will increase by 14.59% from 1 July.
Johannesburg's electricity tariff's will increase by 14.59% from 1 July.
Luvuyo Mehlwana

From 1 July, the City of Johannesburg's residents will be forking out more for services such as electricity and water and sanitation when the latest rates increase comes into effect.

The increase for 2021/22, which was announced in May, will see residents pay 14.59% more for electricity, 6.80% more for water and sanitation and 2% more on property rates.

The city's MMC for finance, Jolidee Matongo, has previously said the rate the tariff increases have been kept as low as possible, given the impact of Covid-19. And the R73.3 billion budget is meant to aid the recovery of service delivery, following the impact of Covid-19 on the city's finances and improve Johannesburg's social development.

However, the latest increases have been criticised, with the Johannesburg Property Owners & Managers Association saying the city's increases disregarded the "harsh reality" faced by residents during "one of the gravest economic downturns in recent history".

In a briefing on Thursday, Ntuthuzelo April from the city's budget office, explained that for the 2021 financial year the city's budget is about R73.3 billion. Of that amount, R65.1 billion will go towards operational expenses, while R8.2 billion will be used on capital expenses.

April explained that the city's expects its revenue for the 2021/22 financial year to be R65.8 billion and its expenditure to be R65.1 billion. The city's electricity revenue will go up by 17.4% to R20.1 billion, mostly made up of input tariffs from bulk purchases.

Revenue from water and sanitation will see a 1% increase and will mainly come from bulk tariffs from Rand Water, while refuse removal revenue will increase by 5.2%.

"In terms of local government and the approach we have taken as the City of Johannesburg, we do maintain a certain margin of surplus, that will be sitting at roughly R3.8 billion and that's the amount that we use to support and fund the capital budget component of our budget," he said.

In order to fund new infrastructure, the city is taking out a loan of about R3 billion and will have R2.6 billion in cash, sourced from grants such as the Urban Settlement Development Grant.

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