EFF forces Joburg to back-pedal on tariffs
The DA-led coalition chooses conceding to lower hikes over being placed under administration
Johannesburg’s governing coalition has conceded to the EFF’s proposed rates and tariffs. Mayor Herman Mashaba said the reduced rates and tariffs would probably result in a smaller surplus and less revenue in the metro’s budget. Johannesburg’s budget has been in limbo since the EFF rejected the city’s proposed rates and tariffs in the 2018-2019 budget last week. In a special council meeting on Monday, the EFF’s Musa Novela proposed a 7.17% increase for electricity, a slight decrease from the 7.37% originally put forward. He also proposed that the average tariff increase on water, sewerage and sanitation be reduced by 1% to 13.2%. The city later said the reduced tariff was based on the Rand Water tariff increase of 12.2% and included a 1% retail margin. Last week, the EFF abstained from the vote, which led to the rates and tariffs not being passed. This resulted in the city failing to pass its R59bn budget. The EFF is the kingmaker in the metro, without which the DA-led coalition does...
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