Cape Town residents are expected to take to the streets on Saturday to protest against the City of Cape Town’s 17.6% electricity tariff increase, which came into effect on 1 July.
Following the implementation of the electricity tariff hike, numerous complaints were lodged by residents.
Lobby groups STOP COCT and Electricity Tariffs Must Fall, who are organising the protest, said in a statement that they had had no choice but to protest.
“The City of Cape Town has taken an uncompromising stance towards the public and the National Energy Regulatory of SA (Nersa) on flouting the rule of law with its electricity tariff hike for 2023/24. This hike is 2.5% higher than what Nersa set the ceiling at. The City did the same in the previous budget year,” the groups said in a statement.
Residents are calling for the high tariffs to be scrapped and the City’s debt collection policy to be urgently revised.
The City implemented its new budget for the 2023/24 financial year with a capital expenditure budget of a record R69.9 billion, but the budget comes with steep increases in municipal rates and tariffs.
In May, residents had the opportunity to comment on the City’s “building hope” budget.
Last month, it emerged that the City implemented a 17% electricity tariff hike – greater than Nersa’s recommended 15.1%.
After complaints surfaced, Nersa said it would investigate the complaint in line with its dispute resolution procedure.
Members from the GOOD party, including its leader, Patricia de Lille, secretary-general, Brett Herron, and councillor responsible for finance, Anton Louw, were also expected to join the protest at the Cape Town Civic Centre.
“The unlawful profiteering by the City, at a time of rampant unemployment and pervasive poverty in a severely constrained economy, should be condemned in the strongest terms. GOOD will be defending the residents’ rights to affordable electricity,” the party said in a statement.
Trade union federation Cosatu in the Western Cape will also join the protest.
Cosatu’s provincial secretary Malvern de Bruyn said:
According to the City’s mayoral committee member for energy, Beverley van Reenen, the City has been in contact with Nersa.
“It is important to note that the City has implemented the council-approved tariffs as per the Municipal Finance Management Act and that the Nersa recommendation of 15.1% does not change the Eskom hike of 18.5%, which materially impacts the input costs for the City,” she said.
Van Reenen added that the City would run an estimated budget shortfall in excess of R500 million for 2023/24 based on Nersa’s guideline tariff increase.
