Cape Town has rejected claims by some residents that their water and electricity prices are unfairly high.
Mayor’s finance committee member Ian Neilson said they were doing everything in their power to keep rates as affordable as possible.
“The city absolutely rejects any disinformation disseminated by certain groups on the tariffs and tariffs of the city, in spite of the numerous efforts of the city to correct the disinformation. It is very clear if you really look at the data that the city’s tariffs are fair, as affordable as possible, and at a sustainable level to ensure that the municipality is healthy and can continue to provide services, by paying Eskom for wholesale electricity purchases and all other major input costs.
Neilson says that without the fare revenues, the city will not be able to provide any service. He says that due to Eskom’s price hike this year, they were forced to implement a 13.48% increase from July 1.
“Electricity is becoming an increasingly expensive product, there is no doubt about it. It is only if Eskom has competition that we will see a real impact on domestic electricity prices. The city has done and continues to do everything in its power to keep these prices as low as possible, in the fairest way possible. Reducing the price (or not increasing the price as much) for any one category of customer has a ripple effect that results elsewhere, for some other categories of customers, and these impacts must also be taken into account. The city must help the needy customers available as well as those who have been severely affected by COVID-19 and the lockdowns. All applications are assessed on a case-by-case basis.
He adds that the city absorbed more of the price hike than any other metro in South Africa where the average increases are 14.59%.