Struggling Capetonians are feeling the pinch after the City of Cape Town's 17.6% electricity tariff increase came into effect from July 1.

Locals are up in arms saying they are getting no value for their money.

The City implemented its new budget for the 2023/24 financial year with a capital expenditure budget of a record R69.9-billion but the budget comes with steep increases in municipal rates and tariffs.

In May, residents had the opportunity to comment on the City’s "building hope" budget. 

A total of 1 400 comments were received of which the majority raised concerns about the electricity tariffs, loadshedding, electricity provision for informal settlements, increase in property rates, and traffic calming measures to be put in place in Mitchells Plain, Gugulethu, Khayelitsha and Kraaifontein.

Just a week into the new tariffs Capetonians are already battling, saying the latest electricity hike plunges ordinary residents further into poverty.

Tafelsig resident and founder of the Electricity Tariffs Must Fall Campaign, Natasha Gertse, said the City’s home evaluations were done in order to remove most residents from the lifeline tariff onto the higher domestic tariff.

“Which leaves residents on an increase of 100% without any notices or warnings," she said, adding that this meant people who had paid R50 for 27 units now paid R50 for just 14 units.

Gertse said she was dealing with a lot of pensioners who had been on the indigent grant; but had been moved onto the higher tariff on 1 July and had to re-apply for the indigent grant.

"Having to go through such a lot of things while the City keeps on deducting units [at the higher rate] until their re-application has been finalised, which could take much longer than usual. Pensioners are sent from pillar to post," she said.

Another resident, Quarnita Walsh-Dantu, said: “The electricity cost is killing me... before I could actually budget, now I can't because it's just too expensive... I have a household of six people (my parents and kids) and I am the breadwinner, but my bread ain't winning... with these increases, I'm just not making ends meet.”

Resident Delia Walters said the costs of electricity had become unbearable.

“It is disgraceful that we have to bear the cost of Eskom's complete inefficiency and corruption. We are paying for a service they don't want us to use. The fact that our government keeps on approving the tariff hikes shows that they are part of the problem,” she complained.

But the City maintains it has protected all households from Eskom’s 18.5% tariff hike as much as possible, reducing the increase to 17.6%, while still funding a reliable electricity service and a plan to end loadshedding.

In a statement, the City said it was offering social relief measures for households in 2023/24.

“With the City's special protection, lifeline tariff customers using 350 to 600 units will now pay only R1.84 in this usage band, compared to R3.15 per unit in 2022/23. This will help to protect households using more electricity this winter, while an average usage of 450 units over a 12-month period still applies to remain in this tariff category,” it said. 

The municipality said it had also upped the property value criteria to qualify for the lifeline tariff from R400 000 to R500 000. 

“Cape Town aims to steadily lessen Eskom reliance, access more affordable power sources, and end load shedding over time.

"The City's 2023/24 budget includes a R2.3 billion end loadshedding plan to protect against the first four stages of Eskom loadshedding by 2026. 

"This will be achieved via a combination of buying power on the open market and demand management,” it added.