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The budget will bite seven per cent more

Ratepayers should brace themselves for the new tariff increases coming into effect on July 1.

Everything, except the tariffs on cemeteries and recreational halls, has gone up.

The metro approved the 2014/15 financial year budget during the budget speech, delivered in the Germiston Council Chambers, on May 29.

Justifying the hikes, Ekurhuleni finance MMC Moses Makwakwa said they are to ensure that “we continue providing a sustainable service.

  • The increases are: Assessment rates: 7.5 per cent.
  •  Electricity: an average of between 6.3 per cent to 7.6 per cent. Makwakwa said Eskom’s national tariff increase is 8.06 per cent, but Ekurhuleni is absorbing at least 1.3 per cent of Eskom’s charges.
  •  Water: an 8.1 per cent increase on water for both residential and business, which is the same increase as that of Rand Water.
  •  Sanitation: eight per cent for both residential and business.
  •  Refuse removal: increase ranges between 2.4 per cent to 7.1 per cent for residents, and six per cent for business.

Makwakwa said that, factoring these proposed tariff increases, the average increase on an account will be about 7.3 per cent, compared to the 9.3 per cent average increase in the 2013/2014 budget.

“This is a clear demonstration that we are committed to providing affordable services and to broaden access,” he added.

The Democratic Alliance rejected the budget and the increases.

According to the DA’s Eddie Taylor, the average seven per cent increase will hurt people.

“Why are we going this high?” he asked”People’s salaries don’t even increase by seven per cent.”

Commenting on the electricity increase, he said he wasn’t sure how the metro is going to explain this to the people.

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