I relocated to Germany last year but maintain my primary property in the northern suburbs of Johannesburg. While I am not directly affected by this electricity surcharge as I am an Eskom customer, my family in Soweto is affected and I am happy to be paying the fee for them.
I am a big believer in paying taxes. While I have my own strong opinions about the wasteful manner in which the South African government, nationally and locally, spends our tax money, I also believe in the importance of paying taxes. I especially believe in the value of taxes toward infrastructure development and social welfare.
Despite the criticism that many people have of social grants, in particular, I support them because they provide a necessary cushion to the poorest among us. No country must leave the poor vulnerable to food insecurity and other insecurities that impede a better quality of life – especially not in a country like SA where black and coloured people in particular have historically been subjected to systematic disenfranchisement and generational poverty.
The reality of the situation is that the city is an old city in a state of immeasurable decay. All infrastructure in the city – electricity, water, roads, stormwater – is in a state of disrepair and urgent need of maintenance and expansion.
The population of the Gauteng, Johannesburg in particular, has been increasing exponentially over the years. With a population of more than 6.3-million residents, Joburg is the largest municipality in SA. It is home to many company headquarters and crucial sectors of our economy.
Without an investment in its infrastructure, there is a danger that it will deteriorate to the point of experiencing capital flight that would have devastating consequences for its residents and the country broadly. And so, citizens must play their part in ensuring that due taxes are paid. Naturally, not all residents have the means to pay, hence the city has a comprehensive and just indigent policy for these residents. But the rest of us must pay our taxes – it is the right thing to do.
MALAIKA MAHLATSI | Paying R230 electricity surcharge for Joburg infrastructure right thing to do
Loss of revenue makes it difficult to ensure energy security in the economic hub of the country
Over the past few days, social media has been abuzz with loud complaints about the newly introduced R230 surcharge charged to City Power prepaid customers.
City Power, a power utility 100% owned by the City of Johannesburg, is responsible for providing electricity to most of Johannesburg. The city recently announced that it would be charging prepaid customers a total of R200 excluding VAT per month, which amounts to R230 including VAT – effective from July 1.
The fee took effect with other tariff rate hikes that were passed by the city council in May. The budget, tabled by the member of the mayoral committee (MMC) for finance, Dada Morero, was voted for by most parties in council, including the ANC, EFF, PA, Al Jama-ah, and COPE.
While the city has been collecting this surcharge from postpaid customers for a while, it has not been doing so with prepaid customers. The implication of this is that a two-tier tariff regime exists, whereby postpaid customers pay more for electricity, thereby subsidising prepaid customers.
Furthermore, the city incurs steep costs for providing the electricity network to its more than a quarter million prepaid residential customers. The problem with this is not only the inequality between prepaid and postpaid customers, but also that CoJ is losing much-needed revenue that should be invested in the maintenance of existing electricity infrastructure. The loss of revenue also means the city is unable to invest in much-needed new electricity infrastructure. This makes it difficult to ensure energy security in a city that is the economic nerve-centre of the regional economy.
I relocated to Germany last year but maintain my primary property in the northern suburbs of Johannesburg. While I am not directly affected by this electricity surcharge as I am an Eskom customer, my family in Soweto is affected and I am happy to be paying the fee for them.
I am a big believer in paying taxes. While I have my own strong opinions about the wasteful manner in which the South African government, nationally and locally, spends our tax money, I also believe in the importance of paying taxes. I especially believe in the value of taxes toward infrastructure development and social welfare.
Despite the criticism that many people have of social grants, in particular, I support them because they provide a necessary cushion to the poorest among us. No country must leave the poor vulnerable to food insecurity and other insecurities that impede a better quality of life – especially not in a country like SA where black and coloured people in particular have historically been subjected to systematic disenfranchisement and generational poverty.
The reality of the situation is that the city is an old city in a state of immeasurable decay. All infrastructure in the city – electricity, water, roads, stormwater – is in a state of disrepair and urgent need of maintenance and expansion.
The population of the Gauteng, Johannesburg in particular, has been increasing exponentially over the years. With a population of more than 6.3-million residents, Joburg is the largest municipality in SA. It is home to many company headquarters and crucial sectors of our economy.
Without an investment in its infrastructure, there is a danger that it will deteriorate to the point of experiencing capital flight that would have devastating consequences for its residents and the country broadly. And so, citizens must play their part in ensuring that due taxes are paid. Naturally, not all residents have the means to pay, hence the city has a comprehensive and just indigent policy for these residents. But the rest of us must pay our taxes – it is the right thing to do.