Pain in the pocket for Capetonians as rates and electricity tariffs increase


Cape Town Mayor Geordin Hill-Lewis has tabled the draft budget for the 2022/23 financial year and it is not good news for residents. Capetonians will see their rates increase by 5.2%, water and sanitation will go up by 5% and refuse by 5%.

A focus will be put on expanding access to water

Reports stated that there is an additional 1.5% increase in water and sanitation. The focus will be on broadening the access to water for lower-income residents residing in informal settlements.

“We have also been able to put this budget together while asking for only inflation-related increases on our service tariffs. Tariffs on refuse will increase by 5%, water and sanitation by 5%, with an additional 1.5% specifically for expanding access to water to the poorest residents living in informal settlements,”

Mayor Geordin Hill-Lewis

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The rise in electricity tariffs was the highest tabled by the mayor. Hill-Lewis revealed that due to Eskom’s 9.61% increase that the National Energy Regulator of South Africa approved, they were bound to a 9.5% rise.

“Because of Eskom’s 9,61% increase, we are bound to a 9,5% increase in electricity tariffs this year — our only tariff increase that is substantially above inflation. An increase over 9% is painful and one that every metro in the country that has tabled its budget so far has had to make,” Hill-Lewis said.

Hill-Lewis says the increases are the lowest among other metros

The total budget for the City of Cape Town is sitting at R61.5 billion. Mayor Hill-Lewis made special mention of the ways the City plans to distribute ratepayers’ money. This includes safety, water and sanitation, transport, infrastructure and others.

Hill-Lewis revealed that the City had been able to expand the budget without above-inflation rates. 

“Cape Town already has the lowest residential and commercial property rates of any metro in South Africa, and we plan to keep it that way,” said Hill-Lewis.

He further stated that the increases being implemented are the lowest of any other metro in South Africa that has already tabled its budget.

“All of these increases are in line with or below inflation forecasts for the coming year. These increases are also the lowest of any metro in the country that has tabled its budget thus far,” said the mayor.


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