New 'fixed' utility fees here to stay, says City
Image: File Picture: Danie van der Lith/African News Agency
THE City has doubled down on its defence of the controversial fixed utility fees that residents say put further strain on already stretched budgets, with some reporting deductions of up to R60 on electricity purchases of just R100.
City customers now pay a fixed monthly charge of R59.90 (excluding VAT), known as the "Services and Wires Charge." This amount, since July 1, is applied as a daily rate of R1.97.
'(For domestic tariff customers) With each electricity purchase, customers pay for the number of days since the last purchase. Example: a customer buying electricity every 15 days will pay 15 x R1,97 = R29,55 in fixed charges (R59,90 for 30 days). Depending on the vendor, the fixed charge could be displayed as 'utility charge' or 'Service and wires charge' or fixed charge,' said City spokesperson, Luthando Tyhalibongo.
Home use tariff customers are being billed a monthly fixed charge of R339,89 (VAT excl.).
Public frustration over fixed utility fees began long before they took effect. During the 2025/26 Budget process, the public raised widespread objections warning that the charges would place an added burden on already struggling households.
The South African Property Owners Association (SAPOA) has also taken the DA-led City to court, challenging the lawfulness of the fixed charges and the City's decision to link certain fixed utility charges to property values.
The Cape Town Collective Ratepayers' Association (CTCRA) representing 56 ratepayer associations and civic organisations from across Cape Town is also supporting the application as Amicus Curiae.
CTCRA interim chair, Bas Zuidberg said: 'Home owners, especially the Home user category, have seen quite a steep increase from R245 to R340 per month for this fixed charge.
'The CTCRA has received more complaints about the fixed water charge, which is no longer connected to the size of the CoCT connection but is now linked to property values. We have also received many complaints about the new sewage fixed charge and the city-wide cleaning charge, which are also linked to property values.'
He said it was clear from the start that these charges were 'highly contentious'.
'More than 10 000 people signed a petition that CTCRA sent out to voice their objections. While CoCT did make a few changes these were not nearly enough to address the concerns. CTCRA is not against the imposition of fixed charges, but we believe linking them to property values is unlawful. Secondly we disagree with the city-wide cleaning charge, which we believe should be funded from the property rates. Thirdly the fixed charges should not be used as an additional revenue stream by CoCT, but they should (in conjunction with the variable charges) cover the actual maintenance cost for the infrastructure. CoCT has proven in the past (through the 'unregulated' portion of electricity consumption charges) not to adhere to this basic principle.'
Civic organisation STOP COCT has also received complaints from residents after noticing the added fixed charges on their municipal bills from July 1, most being outraged and saying that they simply could not afford them.
'The impact on households of the two new fixed charges (sanitation and cleaning) and the increase of 38% in the electricity fixed charge is very negative. In most households these fixed charges now total from around R500 upwards.
'According to the arguments in the Sapoa court case against the City of Cape Town, some of these fixed charges are outside the framework of the law. I fully agree with this argument and believe that the way the City implemented these fixed charges as new revenue streams only benefits the City. Many people are currently joining STOP COCT giving the reason that they have had enough of the tariff increases and the fixed charges,' STOP COCT founder, Sandra Dickson said.
However, the City maintained that the charges were a necessity.
'Tariffs include both a fixed charge and consumption charges. This means residents can save by consuming less, while still ensuring that all ratepayers contribute to Cape Town's infrastructure and fixed service costs. Fixed charges are common throughout South African municipalities and the world, and are a lawful means of ensuring sustainable infrastructure and service delivery. Following two rounds of meaningful public participation, the final revised budget not only protects households under R2,5 million as it was designed to do, but also expands relief to more homes including above this threshold as well,' Tyhalibongo said.
'Previously, all City-supplied customers made a contribution to city-wide cleaning services via the cost of electricity. Cleaning has now been removed from the electricity price. Customers therefore now pay less for electricity, and City-Wide Cleaning is now shown separately on the monthly bill under 'sundries'. It is not new City income but to cover existing costs beyond the refuse collection (under the refuse tariff for wheelie bins and dry recycling)."
Cape Times
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The South African
an hour ago
- The South African
EFF calls for regime change in US: 'Unstable' Trump needs to go to!
The Economic Freedom Fighters (EFF) launched a scathing attack on United States President Donald Trump, describing him as an 'unstable and illiterate imperialist'. The Red Berets rejected the 30% tariffs imposed by the US on South African exports, calling it a deliberate attempt to assert dominance by destabilising weaker economies. In a strongly worded statement, the party also criticised the South African government, warning that this is not the time for what it termed 'sheepish diplomacy.' The EFF said Trump's 'reckless and irrational' tariffs are rooted in a misguided understanding of global trade. The party said the US president poses a serious threat to global economic stability. In the statement, the party also said Trump is a danger to humanity and called for progressive forces across the world to unite and support efforts to remove him from office. The EFF also added that the world has suffered under Trump's rule for too long, calling him a dictator. The statement drew attention to EFF leader Julius Malema's political history. In 2012, he was expelled from the African National Congress (ANC) for calling then-president Jacob Zuma a dictator. Malema had earlier been suspended after being found guilty on three charges, including bringing the ANC into disrepute for advocating regime change in Botswana. The EFF also accused the ANC-led government of failing to improve the country's economy since the end of apartheid. 'Without resolving domestic structural constraints, our country will always be at the mercy of dominant imperial powers, tossed between competing global interests like a leaf in a storm,' the party said. Their comments followed remarks by International Relations and Cooperation Minister Ronald Lamola, who criticised opposition parties for failing to present a united front in response to the US tariff hike. The new tariffs are set to take effect at 12:01 am on Friday, 8 August. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 11. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news
The Citizen
2 hours ago
- The Citizen
Oupa Pilane slams MTPA over alleged Panorama Route corruption
Earlier today (August 4), Oupa Pilane, special attaché for the Kruger Lowveld Chamber of Business (KLCBT), issued a statement regarding alleged corruption in the Mpumalanga Tourism and Parks Agency's (MTPA) handling of funds allocated for the maintenance of the Panorama Route. 'Allocated a hefty R500 million to drive tourism marketing and conserve our natural heritage, the agency has squandered R490 million – 98% of its budget – on salaries, leaving a R60 million deficit for the same,' Pilane shared. He explained that the money collected at park gates and concessions, meant to maintain facilities and protect these iconic reserves, are instead being diverted to plug this financial black hole. ALSO READ: Panorama Route mismanagement threatens tourism economy In July, Pilane invited the MTPA on a tour of the Panorama Route to engage on the dilapidated condition of its tourist attractions. While the MTPA declined the invitation, the tour went ahead as scheduled, with members of the media in attendance. Neglect has resulted in crumbling infrastructure, disconnected electricity, broken water pumps, and a shameful shortage of basics like toilet paper and working toilets. ALSO READ: Mpumalanga MEC for Tourism discusses safety and Panorama Route conditions at budget speech The KLCBT urged the MTPA to collaborate with them in creating actionable plans for the better maintenance of these sites. The organisation had initially planned to share these plans within seven days of the media tour, but decided against issuing a joint statement with the MTPA. The delay was caused by further enquiries from the agency regarding the proposed plans. On the alleged corruption, Pilane said: 'The MTPA's leadership has the gall to boast about 'clean audits', as if that absolves their failures. Accounting for salaries is the easiest part of financial oversight – it's like applauding a driver for fuelling the car while crashing it into a ditch.' According to Pilane, Mpumalanga deserves leadership that prioritises its people over bloated bureaucracies, and he is demanding answers for these concerning financial figures. ALSO READ: Panorama Route mismanagement threatens tourism economy Lowvelder will share more on this in Thursday's print edition.
The Citizen
2 hours ago
- The Citizen
US tariffs: Here's why talks over trade deal have been ‘complex'
Talks with the US are continuing in hopes of finding a solution. Trade, industry and competition Minister Parks Tau has outlined the challenges South Africa faced during negotiations with the United States (US), as the country prepares to respond to the looming 30% tariff on its exports. The tariffs are scheduled to take effect on Friday after South Africa did not reach a trade agreement with the US before President Donald Trump's deadline. Trump had delayed the implementation of the tariffs for 90 days in April to allow time for negotiations. Tau dismisses blame game ahead of US tariffs During a media briefing in Germiston on Monday, Tau emphasised that discussions with the US are still ongoing in an effort to reach a resolution. 'I think it would be irresponsible as a country [not to do so],' he said. Government had submitted a proposed Framework Deal in May, which aimed to reduce the US trade deficit, address tariff concerns, promote digital trade, strengthen commercial ties, boost investment, and remove non-tariff barriers – ultimately to build a more balanced and beneficial trade relationship with the US. Tau also addressed criticism directed at him and International Relations and Cooperation Minister Ronald Lamola over the non-success to secure a trade deal. ALSO READ: SA's efforts to repair US ties undermined internally, says Lamola amid tariff fallout The Democratic Alliance (DA) recently accused both ministers of 'negligence and ineptitude', claiming the lack of a deal amounted to 'failed diplomacy'. The party also questioned why South Africa did not reach an agreement, while Botswana, initially facing a 37% tariff, managed to negotiate it down to 15%. In response, Tau dismissed the blame game as unhelpful. 'Should we be apportioning blame? I think to those that seek to score political points as opposed to finding solutions to the challenges that we have,' he said. Watch the briefing below: Why negotiations have been difficult Tau explained that a South African delegation met with US officials in Angola a month ago, requesting more time to revise a new template of the Framework Deal. However, the US did not respond to the proposed draft or to the confidentiality agreement South Africa had signed to move the discussions forward. 'We did not get a signed confidentiality agreement on the side,' he said. Tau added that just two days before the tariff announcement, the South African government followed up with the US, asking how to proceed. The US response was that South Africa should submit a concrete offer – not a negotiating position. 'The feedback is: 'let's look at the template as a red herring, please give us an offer and we will respond'.' READ MORE: Ramokgopa dismisses claims US tariffs target BEE policy but admits it needs 'tweaking' The minister detailed how difficult the negotiation process with the US was, explaining that South Africa was expected to submit an offer without receiving a counter-offer in return. This made it a very challenging position to negotiate from. He also insinuated that any offer made in such a situation comes with a cost – especially because there's no guarantee of what the country will receive. 'When you are in that situation, part of your reality is that you actually don't know what tariff you are going to get even after making that offer. So we can only make an offer, sit, wait and hope,' Tau remarked. #RSAandUSARelations 🇿🇦🇺🇸 | Today, the Ministers of International Relations and Cooperation, Mr Ronald Lamola and Trade, Industry and Competition, Mr Parks Tau, held a joint press briefing on South Africa's Response Measures to the US tariffs. @the_dtic @GovernmentZA @g20org — DIRCO South Africa (@DIRCO_ZA) August 4, 2025 South Africa had to act in its own best interest while also taking into account the US' influence in the global trade landscape, according to Tau. He added that instead of assigning blame, the focus should be on understanding the full context and navigating 'a complex negotiating environment' responsibly. 'At this point, we are focused on the task and not who to blame. We leave that to others.' South Africa-China relations When asked if the tariffs would push South Africa to align more closely with China, Tau said the situation was not as straightforward as 'simply opening the floodgates'. The minister pointed out that the announcement at a China-Africa cooperation summit (FOCAC) in June – that China plans to sign a new economic pact with the continent, removing all tariffs for countries it has diplomatic relations with – means that a formal free trade agreement will need to be established. He warned that entering into such an agreement requires careful consideration. 'You have to think about how you safeguard your own markets and which industries would be impact.' ALSO READ: US tariff of 30%: Rand weakest in 3 months, thousands of jobs in danger Tau further revealed that China has also proposed signing a memorandum of understanding (MoU) focused on industrialisation. 'They have given us the proposal; we are currently discussing it and should finalise it,' he said, adding that this could come with geopolitical implications. 'It might be that the discussion about who you are working with becomes an issue… but I'm not suggesting that there are unlikely to be complications in that discussion.' New ambassador to the US Lamola later confirmed that the appointment of a new South African ambassador to the US is in its final stages. The minister explained that the process has not been straightforward, partly due to the earlier departure of former ambassador Ebrahim Rasool, who was declared 'persona non-grata' by the US. He emphasised that President Cyril Ramaphosa has been giving the matter 'careful consideration' and applying 'due diligence'. Ramaphosa previously appointed former deputy finance Minister Mcebisi Jonas as his special envoy to the US. However, Jonas' past remarks about Trump have reportedly complicated matters. 'The president, at the right time, will announce who will become the ambassador of South Africa in the US,' Lamola said. ALSO READ: South African farmers on the frontline of US tariff hikes 'This will not be dictated to by anyone. He will do so in line with his powers as provided for in the Constitution. 'Obviously, he may consult whomever he deems necessary and prudent to consult to appoint this ambassador.' Lamola also made it clear that the absence of an ambassador had no impact on the recent trade dispute with the US. 'Ambassadors do not negotiate any trade deals, as it is being suggested in some quarters that the fact that we don't have an ambassador might have affected our ability to reach an agreement. That is not a correct description.'
