Proposed rates and tariffs questioned

The proposed tariff increases set to be implemented on 1 July are being questioned by the Democratic Alliance.

“We in the DA take the view that increases should, at best, not be higher than the inflation over the past year,” says DA Shadow member of the Mayoral committee for Environment and Infrastructure services, Denis Hunt.

The inflation headline rate of was 5 % over the last year and Hunt contends that water and refuse increases are too stiff and that electricity increases are also above inflation by about 2 to 3%. The only hike deemed acceptable is the property rates. Hunt’s point is that the City is adjusting rates to offset its other losses.

“We are losing 34% of our water through aging infrastructure and poor response time to pipe bursts and water that is simply not paid for.”

“There is a similar story on electricity but actually worse, due to theft of cable and electricity itself. Losses are running at 30% because roads are not being looked after and residents pay out huge sums for damages to their vehicles, which is never recoverable because service delivery is abysmal,” argued Hunt.

At this rate, the tariffs will have to increase at an exponential rate to keep up with the rising losses.

“We are fast approaching the point where the city cannot make ratepayers compensate any more for mismanagement, losses and poor planning. On top of it all, if the City would only just collect the money that is due to them, where payment levels are running in the low 80 per cent, these increases would simply not be necessary at all.”