DA Delivery Fact #19

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Apr 28, 2011 No Comments ›› Admin

Compared to Johannesburg the 2011/12 increases in service charges in the City of Cape Town are far smaller across the board and the quality of the service delivered in turn, far better value for money.

The Evidence: Despite massive price escalations from Eskom for electricity and the general rise in transport, material and labour costs, the proposed increases in service charges by the City of Cape Town in the coming year are far more favourable than those proposed in Johannesburg. Service charges for electricity, water, wastewater and refuse make up 53% of the City’s revenue. Because it plays such a big part in revenue, it is a crucial and growing segment of Cape Town’s funds.

However, service charges must be fair to consumers and should only rise within reasonable limits. It is for this reason that Cape Town has made every effort to ensure that services provide value for money (an effort backed up by the statistics, which demonstrate Cape Town leads the way on water, sanitation, electricity and refusal removal) and that they are as low as possible. Of course they are supplemented by a comprehensive indigent policy, set out here.

Here is how Johannesburg service charges increases stack up against Cape Town’s:

  • In Johannesburg, service charges for electricity are rising 35% in 2011/12; in Cape Town, they are rising 19.9%.
  • In Johannesburg, service charges for water are rising at 13% in 2011/12; in Cape Town, they are rising 8.3%.
  • In Johannesburg, service charges for refuse collection are rising at 6% in 2011/12; in Cape Town, they are rising 5.5%.
  • In Johannesburg, service charges for property rates are rising at 6.7% in 2011/12; in Cape Town, they are rising 5.9%.


source: http://thedadeliverydaily.com


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