Joburg to review municipal tariffs

Wednesday, April 7, 2010

Pretoria - Johannesburg Mayor Amos Masondo announced on Wednesday that the city will review its tariff rates based on the revised municipal tariffs of 28.9 percent announced by Eskom.

He said the 28.9 percent tariff increase, effective from July 1, is up by more than 4 percent compared to the initial figure of 24.8 percent.

"In Joburg we had already approved our tariffs based on the 24, 8%. We are now forced to go back to the drawing board to review our tariffs based on the 28, 9%.

"This is a blow for the people of Johannesburg - both residents and the business community. A sharp rise in electricity costs will have a severe impact on poor households who will be further affected by higher prices of other essential commodities," said Masondo.

He said if the City did not review the rate, it would lose more than R200 million.

"It would do this country a lot of good if Eskom can be forced to reduce or improve its inefficiencies which are unacceptably high. If Eskom can reduce its losses, then tariffs would not be so high," he said.

He said the city had been placed in an unenviable situation as it receives the bulk of its electricity from Eskom.

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