logo
Cape Town residents rally against proposed rate increases with new petition

Cape Town residents rally against proposed rate increases with new petition

IOL News30-04-2025

The graph was taken from a thorough analysis conducted by Jon Lijnes, Noordhoek resident.
As the deadline for public participation on the City of Cape Town's draft budget for 2025/26 approaches on May 2, the Noordhoek Ratepayers' Association (NRPA) is urging residents to sign a petition opposing the proposed budget.
Initiated by the Cape Town Collective Ratepayers' Association (CTCRA) — a coalition of more than 50 civic organisations — the petition has gained significant traction, particularly among communities in the Far South.
The petition raises concerns over the City's proposed shift to fixed monthly charges for essential services such as water, electricity, sanitation, and cleaning.
These changes are not only seen as unfair but may also be legally questionable.
Both the NRPA and the Fish Hoek Valley Ratepayers' and Residents' Association raised the alarm earlier this month, warning that the budget's structural changes could result in monthly increases of up to 30% for many households — especially those in properties valued above R3 million.
The NRPA is particularly concerned about the financial burden these increases will place on residents, especially pensioners and those already struggling with rising living costs.
The petition highlights several pressing concerns regarding the City of Cape Town's proposed budget for 2025/26 including rate increases of up to 30%, driven by higher property values; the City's move from usage-based billing to property value-based charges for essential services like electricity, water, sanitation, and cleaning; and 11.4% increase to the City's budget;
Mayco member for finance, Siseko Mbandezi, when announcing the budget, said the City is investing R39.7bn in infrastructure over the next three years for better water and sanitation, roads, electricity services, public transport and more.
He said for every R1 in property rates, Cape Town residents fund Policing, Traffic, Fire and Disaster services (29 cents); infrastructure investment (14 cents); free and subsidised services to the poor (15 cents); customer care, IT and service delivery (15 cents); parks, public spaces, environment and libraries (13 cents); MyCiTi public transport (six cents); economic growth, tourism and informal trading programmes (four cents); city clinics and health services (four cents).
"There are also material changes in the tariffs for water and sanitation and urban waste management in the way that it is calculated and how it will be displayed on accounts, but not necessarily in the cost impact. Importantly, all income from rates and tariffs go toward paying for service delivery.
"In general, it must be pointed out that the City of Cape Town offers the lowest property rates for commercial, industrial, and residential properties, based on an analysis of the 2025/26 draft budgets tabled by each metro. The rate-in-the-rand is a statutory formula used by municipalities to calculate property rates. The formula shows how much a person would pay in rates for every rand of their property value," said Mbandezi.
Cape Argus

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

New rules mandate energy-efficient motors — a win for SA's strained power grid
New rules mandate energy-efficient motors — a win for SA's strained power grid

Daily Maverick

time2 days ago

  • Daily Maverick

New rules mandate energy-efficient motors — a win for SA's strained power grid

As of June 2025, South Africa has activated mandatory regulations that affect a R3-billion industry and will result in annual energy savings of 840 gigawatt hours — enough to power a city the size of Polokwane or approximately 140,000 households for a year. Electric motors might not sound exciting — but they're everywhere. They power conveyor belts in factories, water pumps on farms, fans in cooling systems, and crushers in mines. And as of June 2025, every new motor sold in South Africa will have to meet higher energy efficiency standards. That's because South Africa has officially implemented its Minimum Energy Performance Standards (Meps) for electric motors, bringing the country in line with global standards. The change affects a R3-billion industry, with the goal of saving up to 10% of energy per low voltage motor — which is significant in a country where demand exceeds supply. The new rule requires that most three-phase, low-voltage electric motors sold in South Africa meet IE3 (International Efficiency) standards. Less efficient IE1 and IE2 motors will be phased out over time, as old ones reach their end of life. Regulated by the National Regulator for Compulsory Specifications, this shift applies to motors rated between 0.75 kW and 375 kW with two, four, six, or eight poles — the kind you'd find in factories, farms, and commercial buildings. According to the International Energy Agency, electric motors and motor systems are responsible for about 53% of the world's total electricity consumption. And standards like MEPs offer the potential to reduce the energy demand of motor systems by 20 to 30% with short payback periods. Fanie Steyn, Executive of the Electric Motor Division at WEG Africa, a leading motor manufacturer, said that about 250,000 IE1 motors were imported into South Africa each year, representing a R3-billion value chain. Currently, there's a 3:1 ratio of IE1 to IE3 motors entering the country. 'From now, that's all about to change,' said Steyn. Those motors now need to be replaced with IE3 models, which are typically 4 to 10% more efficient. This might not sound like much — but considering that all electric motors account for around 65% of industrial energy use, and industry accounts for about 60% of the country's total energy demand, these efficiency gains are not negligent. 'Electric motors are the prime mover for all industry — almost everything that moves is driven by an electric motor. 'If you go to where a cold drink is bottled, the pump that pumps it, the conveyor that moves the bottles, where bread is made, or where mielies are crushed to make flour — it's all powered by motors,' he said. 'Almost everything that moves is by a motor.' Efficiency standard So starting this year, the new rules will require that all new motors meet the IE3 efficiency standard, which means they use electricity more efficiently and last longer. While the rules don't force businesses to replace existing motors immediately, over time, as older motors wear out, they will be replaced with these more efficient models. Dr Theo Covary, the lead researcher of the cost benefit analysis undertaken to inform these new regulations, estimates that this change will save South Africa 474 gigawatt hours (GWh) of electricity in the first year alone — enough to power about 44,000 homes for a year. Over the next decade, the savings will add up to 5,763 GWh, roughly the annual electricity use of a major South African city. 'The new IE3 regulation is expected to reduce electricity demand by approximately 0.25% in year one, which is reducing electricity by 0.25% in one year, 'which may seem small and insignificant but is material given the high net economic benefit to the economy', said Covary. The total cumulative energy savings of 5,763 GWh after 10 years is equivalent to the electricity used by Nelson Mandela Bay in one year. This is because as more and more older, less efficient motors reach their end of life and get replaced by more efficient models, the savings increase. In addition to energy savings, this reduction would prevent about 5 million tons of CO₂ emissions. To put this in perspective, offsetting that amount of carbon would require planting spekboom — an indigenous South African plant known for its carbon sequestration ability — over an area of approximately 3,333 square kilometres, which is about twice the size of the Western Cape's Garden Route District. Energy efficiency adds up If you consider that Eskom generated about 200 terawatt-hours (TWh) of electricity in the financial year ending March 2024, the estimated 840 GWh saved (or 0.84 TWh) from this new standard represents 0.25% of the power the country uses in a year. ' It might not sound like much, but believe me — 0.25% is a lot, and it all adds up,' said Chris Yellend, an electrical engineer and energy analyst from Business EE Intelligence. 'It's good that South Africa is following suit and becoming more energy efficient.' He added that energy efficiency measures like this offer the best returns in terms of cost. 'Instead of spending billions on new generation infrastructure, the economy can invest in efficiency — it's a no-brainer. Improving energy efficiency is the most cost-effective way of 'building' new electricity supply. It's not as insignificant as it might seem.' Steyn echoed these sentiments, saying: 'What do you do if you don't have energy? You have to build more power stations, maybe solar or wind farms — but all those options are massive projects with huge capital outlay. And it takes time and long periods of investment and installations before you can do that. 'We have an energy crisis, so in the short term one of the quickest or easiest ways to overcome that is to increase efficiency of products.' Steyn added: 'South Africa has done a phenomenal job over the years with labelling programmes — for fridges, TVs, lights. But now, finally, we're targeting the big energy consumers: electric motors.' According to a 2022 cost-benefit analysis by Covary and economist Linton Reddy of DNA Economics — which informed the regulation — these seemingly small savings are actually substantial, especially given the poor performance of Eskom's generation fleet. Despite the modest efficiency improvements, the long operating hours of motors translate into significant overall savings. To put it into context, Yelland said: 'If you value electricity at around R2.00 per kilowatt-hour, that's a saving — or a reduction in revenue to Eskom — of about R1.68-billion.' Tax breaks and rebates for motor upgrades Companies that upgrade to the new IE3 motors can tap into financial incentives. Zadok Olinga, a former president of the Southern Africa Energy Efficiency Confederation and director of resource management consultancy Oelinga, said the new minimum standards aligned with South Africa's broader push for energy efficiency — and opened the door to claiming Section 12L tax deductions and Eskom rebates. Under Section 12L, businesses can claim 95 cents per kilowatt-hour of verified energy saved as a tax deduction. Eskom also offers a 41c/kWh rebate for projects that cut electricity use — including motor upgrades — as long as minimum savings and demand reduction targets are met. Phase in Manufacturers and Original Equipment Manufacturers can still sell off their existing IE1 and IE2 stock until May 2026. End-users — such as factories or farms — aren't required to immediately replace older motors, but must buy energy-efficient ones when they do. 'Motors are built to last around 20 years,' said Van Niekerk from WEG.'But in reality, many reach end-of-life within seven to 10 years, especially in demanding environments.' For businesses that run motors 24/7, the higher upfront cost of an IE3 motor is often recovered in a matter of months through lower electricity bills. For others — say, a bakery or a workshop that runs motors eight hours a day — the payback period might be two to three years. DM

Cape Town labour court reinstates driver sacked for negligence at African Bank
Cape Town labour court reinstates driver sacked for negligence at African Bank

TimesLIVE

time4 days ago

  • TimesLIVE

Cape Town labour court reinstates driver sacked for negligence at African Bank

A driver fired for negligence after leaving company equipment in a vehicle with a leaking roof has won a labour court battle to be reinstated in his job with back pay at African Bank. The bank fired Alistair Steenkamp — who was initially employed as a customer relations consultant — in 2021 after charging him with negligence and the use of a company vehicle for private purposes. 'During the period October 25 to 26 2019 you allegedly acted in a negligent manner when you left the company [audio] speakers, used for marketing, overnight in the vehicle when it was raining while you were aware of the leaking roof. The speakers were damaged due to your negligence,' read the charges. 'On November 28 2019 you allegedly acted in a negligent manner by not keeping the company laptop safe while it was in your possession and you lost the laptop due to your negligence. On November 27 2020 you allegedly left the company cellphone in an unlocked vehicle without taking proper care, the cellphone was stolen, resulting in a loss of R3,899. 'During the period January to December 2019 it is alleged that you parked the company bus at times at the residence of a relative without overnight authority. This is in breach of the bank's rules and policy.' Steenkamp, who was working as a driver when he was fired, pleaded guilty to the first charge and was found guilty on it by the chairperson of a disciplinary hearing. He had been working for the bank since 2018.

NEW: Kaizer Chiefs DIDN'T have R3m bid rejected for striker!
NEW: Kaizer Chiefs DIDN'T have R3m bid rejected for striker!

The South African

time5 days ago

  • The South African

NEW: Kaizer Chiefs DIDN'T have R3m bid rejected for striker!

It's clear Kaizer Chiefs are searching for a striker or two to boost their attack ahead of the 2025/26 season. Chiefs have been struggling in front of goal for several seasons now and will look to end those woes soon. Coach Nasreddine Nabi made it no secret that he wanted to bring in a striker, when he arrived at Chiefs. He didn't get his wish in his first window but was able to add two forwards in January. These being Tashreeq Morris and Glody Lilepo. These experienced stars were brought in to supplement a blunt-looking attack which featured Ranga Chivaviro, Ashley du Preez and a young Wandile Duba. While Morris proved to be a flop, Lilepo ended up being the club's joint top goal scorer with young Duba with five. That, however, just highlighted the need for a senior striker to shoulder that goal scoring burden. There have been a number of players mentioned in that regard, with DRC international Fiston Mayele one. Earlier on Tuesday, this publication reported that Chiefs had also made an enquiry for Etiosa Ighodaro. The player has spent the last couple of seasons on loan from Mamelodi Sundowns, and could now be keen for a permanent exit. Another option Amakhosi were rumoured to have an interest in is Simba SC striker Kibu Denis. Reports had recently circulated that Chiefs had put in a bid of R3 million to Simba for Denis. But according to FARPost , those reports are wide off the mark, because the club are not interested in the player. 'While initial reports linked him to several players, sources close to the coach confirm that his primary focus remains on Tanzanian international midfielder Feisal Salum, while emphatically dismissing any interest in Simba SC's Kibu Denis.' Wrote the publication. Chiefs fans, now that Denis seems not to be a target, which striker should the club target for next season? Let us know by clicking on the comment tab. Or by emailing info@ or sending a WhatsApp to 060 011 021 1. You can also follow @TheSAnews on X and The South African on Facebook for the latest news.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store