City of Cape Town Link

New rates and tariffs to be reflected in municipal accounts later in July onwards

<p>The City of Cape Town is funding a record infrastructure investment in communities, while offering SA’s most inclusive qualifying criteria for indigent relief and rates rebates, and the lowest cent-in-rand property rates for residential, commercial and industrial properties compared to other metros. Annual increases have been kept to a minimum for City customers, who will see these reflected in their municipal accounts only later in the July billing cycles and onwards. It is thus important to reduce usage so as to reduce costs where possible. <br></p>

<p>'Cape Town has some of South Africa's most inclusive assistance for rates and tariff relief. We further offer among the lowest property rates for Commercial, Industrial, and Residential properties.</p><p>'Rates and tariffs are used to enable basic services and for future-proofing for water and energy security and what Cape Town needs.</p><p>'The City has been able to reduce Eskom's 12,74% increase to 11,78%, and offer protection for lower income customers on the subsidised Lifeline tariff, while still funding R4bn in electricity grid upgrades and plans to end sole reliance on expensive Eskom power as soon as possible. The City spends more than 70% of its electricity tariff income to buy electricity from Eskom, with the City's 2024/25 tariff based on a cost of supply submission to Nersa. </p><p>'As always, this time of the year, we advise our customers to be mindful of the context: in winter we use more electricity and this combined with the annual increase increases household costs. </p><p>'To shield households using more, especially in winter, Lifeline customers will pay 44% less (R1,89 less per unit) when using over 600 units. Last year, Cape Town raised the number of units that can be bought at a cheaper, subsidised rate, from 350 to 600 units per month. Thanks to these changes, Lifeline customers using 600 units in a month, will still pay R113,94 less compared to two years ago in 2022/23. Now you can also buy cheaper units after 600-unit usage, provided you stay within the 450 unit monthly average over 12 months to remain on the Lifeline tariff.</p><p>'The best way to reduce costs is to reduce usage. For instance, turn the geyser temperature down to 60°C or put your geyser on a timer. Furthermore, buying electricity in bulk is not cheaper. Buy only what you need in a given month. When buying in bulk, you move onto a higher tariff block, which is more expensive,' said the City's Mayoral Committee Member for Finance, Councillor Siseko Mbandezi. </p><h4>Rates and tariffs from 1 July 2024</h4><ul><li>Property rates increase: 5,7% (for shared services like clinics, fire services)</li><li>Eskom-driven electricity increase: 11,78% (City) (12,74% Eskom)</li><li>Water and sanitation increase: 6,8%</li><li>Refuse removal increase: 5,7%</li></ul><h4>Cape Town has SA's most inclusive criteria for rates and indigent relief: </h4><ul><li>Highest Free Water allocation (15KL)</li><li>Widest qualifying criteria for 100% rates rebate (R450 000 property value, less than or equal to R7 500 monthly income)</li><li>Widest criteria for lifeline electricity (R500 000 property value, less than or equal to R7 500 monthly income)</li><li>Pensioners: widest rebate and lifeline electricity criteria (less than or equal to R22 000 monthly income, regardless of property value)</li></ul><p> <strong><em>*The City further offers the lowest property rates for Commercial, Industrial, and Residential properties, based on an analysis of the cent-in-rand rates published in the 2024/25 draft budgets of each metro accurate at the time).</em></strong> </p><p> <strong>If customers do not have the ability to pay, contact us to see what help is on offer: Phone <em><a>0860 103 089</a></em> or visit your nearest municipal office for advice.</strong></p><h4>Residential electricity tariffs (VAT included) </h4><h4> Lifeline customers </h4><ul><li>0 – 600 kWh = R2,37 per kWh</li><li>600,1+ kWh = R2,37 per kWh</li></ul><h4>Domestic customers</h4><ul><li>0 – 600 kWh = R3,91 per kWh</li><li>600,1+ kWh = R4,75 per kWh</li></ul><h4>Home user customers (credit and prepaid):</h4><ul><li>Service Charge R281,78 per month</li><li>0 – 600kWh = R3,44 per kWh</li><li>600,1+ kWh = R4,75 per kWh</li></ul><h4> About 30% of households receive free basic electricity.<br></h4><h4>WATER TARIFFS </h4><h4> Water-wise (no restriction) Domestic (VAT included)</h4><ul><li>0 – 6kl = R22,52 per kl (1 000 litres)</li><li>6 – 10,5kl = R30,96 per kl</li><li>10,5 – 35kl = R42,07 per kl</li><li>More than 35kl = R77,63 per kl</li></ul><p>The cost of providing the water service remains largely the same regardless of how much or how little water is in the dams.<br></p><h4>Water fixed charge: </h4><p> <br>This is part of the total water tariff: 15 mm connection (most common): R87,29 (including VAT). Registered indigent households do not pay the fixed basic charge. <br> <br>About 40% of registered indigent households in Cape Town get an allocation of water free of charge.<br></p><h4>SANITATION TARIFFS: WATER WISE (NO RESTRICTION) - DOMESTIC (VAT INCLUDED)</h4><h4>Safe removal of wastewater from properties</h4><ul><li>0 – 4,2kl = R19,80 per kl (1 000 litres)</li><li>4,2 – 7,35kl = R27,20 per kl</li><li>7,35 – 24,5kl = R38,20 per kl</li><li>24,5 – 35kl = R60,09 per kl</li></ul><h4>Refuse (VAT included)</h4><h4>MONTHLY REFUSE CHARGE FOR A 240ℓ BIN WEEKLY COLLECTION: R191,20</h4><h4>Tips to lower household bills</h4><ul><li>If on the LIFELINE ELECTRICITY TARIFF, keep power usage below 450 kWh per month on average over a 12-month period</li><li>Use less water; use less power to lower household costs</li><li>Switch to more efficient light bulbs and taps to reduce usage and costs</li><li>Turn the geyser temperature down to 60°C</li><li>Switch to a prepaid electricity meter for more control</li><li> Buying electricity in bulk is not cheaper. Buy only what you need in a given month. When buying in bulk, you move onto a higher tariff block, which is more expensive.</li></ul> <div><a href="https://resource.capetown.gov.za/cityassets/Media%20Centre%20Assets/Rates%20and%20Tariffs%20March%202024_approved.pdf" target="_blank">View our rates and tariffs infographic</a><br><a href="https://resource.capetown.gov.za/cityassets/Media%20Centre%20Assets/Rates%20and%20Tariffs%20March%202024_approved.pdf" target="_blank"><img src="https://resource.capetown.gov.za/cityassets/Media%20Centre%20Assets/Rates%20and%20Tariffs%202024_2025.jpg" alt="" style="margin:5px;width:300px;height:428px;" /></a><br></div><div><br></div> <h4>Contact </h4>Visit our customer contact centres for assistance or contact the City Call Centre: <em> <a>0860 103 089</a></em><br><br><em> </em><strong>End</strong><br><br><strong> </strong><br>

2024-06-30T22:00:00Z

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