- Dec 24, 2014
Cape Town - City of Cape Town ratepayers are fuming over the number of fixed levies they are paying in addition to their normal rates and services bill, accusing the DA-controlled City council of trying to circumvent steep rates and water increases to save face with voters.
Currently ratepayers are paying a levy for water, called a pipe levy, a prepaid electricity levy, and those with solar power, a small-scale embedded-generation (SSEG) tariff (for customers with grid-tied feed-in SSEG systems, such as solar PV) for what is essentially a free power source.
Deputy mayor and Mayco member for finance Ian Neilson on Tuesday admitted that the different levies are there to prop up the City’s coffers.
“What we saw particularly during the drought is that water consumption patterns have shifted; we love the fact the consumption patterns have shifted but we had to look at our tariff structure to see whether it is appropriate.
“We left our income streams at risk. If we didn’t have a fixed component then people would end up paying very little, even wealthy residents.”
Neilson said the fixed charges are for maintenance.