The City of Johannesburg has announced that residents will see their electricity tariffs and water and sewer bills skyrocket by 12.74% and 13.9%, respectively, from July 1.
The announcement was made by Vusi Gumbi, the deputy director for communications and stakeholder management in the office of the City of Joburg finance MMC Margaret Arnolds.
Gumbi said the tariffs are set in a manner that ensures, on one hand, that the city prioritises the provision of essential services and, on the other, that the most impoverished communities are protected.
This increase in prices of services that the city renders to residents will see the municipality’s 2025/2026 budget rise to R89.4-billion.
Indigent people urged to apply
“The government of local unity [GLU] has supported the rebates, particularly for indigent communities, and is calling for those residents who qualify to apply to receive the benefits,” Gumbi said.
“Councillor Margaret Arnolds, a member of the mayoral committee for finance, says she is pleased that the city ensured that the property tariff is set at 4.6%, making it one of the lowest increases in comparison to other metros in the country.”
Arnold tabled the city’s budget in May.
“The city’s GLU is happy with several rebates that have been passed to cushion our residents, such as pensioners, people living with disabilities, and child-headed households that are under a lot of financial strain,” said Arnolds.
According to Gumbi, the following municipal service tariffs have been approved by the city:
- Electricity is set at 12.74%;
- Water and sewer are set at 13.9%;
- Refuse is set at 6.6%; and
- The city set property rates at 4.6%.
Protection for struggling households
To shield struggling households, Gumbi said the city has passed residential rebates and rebates for pensioners.
“The first R300 000 of all residential property values is exempt from rating. For residential property owners with multiple properties, the property with the highest value will receive the full residential threshold rebate.
“For additional properties, the rebate will be capped at R15 000,” Gumbi said.
Regarding pensioners between the ages of 60 and 69, he said the following:
- Pensioners whose gross monthly income is below and equal to R13 049 are eligible for a 100% rebate on properties valued up to R1.5-million;
- Pensioners whose gross monthly income is above R13 049 or less than or equal to R22 367 qualify for a 50% rebate for properties with a market value up to R1.5-million;
- Pensioners whose monthly income is above R22 367 are not eligible for a rebate; and
- Rates will be levied on properties with a market value of more than R1.5-million.
Inculcating a culture of payment
About pensioners aged 70 and above, Gumbi said they will qualify for a 100% rebate on properties valued up to R2-million, irrespective of their income level.
Arnolds said to encourage regular payments of municipal services, the rebate applications will only be processed if the account is not in arrears unless there is a dispute or payment arrangement in place.
“We need to inculcate a culture of payment. Should the customer default on a payment arrangement, the city reserves the right to withdraw the rebate,” said Arnolds.
“The rebate serves as a reward for property owners who keep their accounts up to date.”
