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Key changes to water and

Following the approval of the City of Cape Town’s budget for the 2017/18 financial year, key tariff changes have been implemented as from 1 July 2017.

Due to the pressure on the water and sanitation tariffs, as well as affordability aspects, the 2017/18 financial year sees the end of free basic water and sanitation services to all customers. This will now only apply to indigent customers.

The non-indigent category will be subject to the phased introduction of payments for the first 6 kl for water and 4.2 kl for sanitation during the 2017/18 and 2018/19 financial years. The additional impact for the 2017/18 financial year on non-indigent customers will be approximately R27.36 (incl. VAT) per month for water and R18.43 (incl. VAT) per month for sanitation. This charge per kilolitre at the Step 1 tariff is far below the actual cost of delivering water and sanitation.

As for electricity, after considering public input, the City decided to delay the implementation of the home-user tariff, which was proposed in the draft budget. Consumers in properties above the value of R1 million will remain on the Domestic Tariff. Current Lifeline Tariff customers with municipal property valuations in excess of R400 000 will be migrated to the Domestic Tariff. Consumers with property values of less than R400 000 who purchase less than 450 kWh per month on average will continue to be supplied at the Lifeline Tariff.

We have also increased the value of property from R400 000 to R500 000 for households that qualify for a 25% reduction in refuse removal charges.

Rates will increase by an average of 5%, which is down from the 6% of last year. Apart from our existing relief to indigent residents, we have introduced a new rates rebate of R50 per month for households with properties valued at between R400 000 and R750 000.

We thank all of our ratepayers and residents for helping us to provide top-notch services to all.

Councillor Johan van der Merwe Mayoral member for Finance, City of Cape Town
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