Is it fair for the City to use property values to determine electricity tariffs?

The City of Cape Town new electricity tariffs took effect from July 1.

Since the implementation of the new tariffs, the City of Cape Town has removed 40 000 households from the lifeline tariff to the domestic tariff.

Is it fair for the City to determine what residents pay on their electricity based on the value of their property and not their income because that where the money comes from, asked the listeners.

CapeTalk's Africa Melane speaks to Paul Berkowitz, director at EDGIS about the fairness of the municipalities using property value to determine how much people pay for electricity.

It is important to be sympathetic and to try and take into account the different consumer groups in the municipality but the bottom line is there is no perfect system.

Paul Berkowitz, Director at EDGIS

It is much easier to determine the property value that it is to determine an income.

Paul Berkowitz, Director at EDGIS

People don't like talking about their income, they might overstate or understate their income if they think they might get more government subsidies.

Paul Berkowitz, Director at EDGIS

To hear more of this interview, listen below:


This article first appeared on 702 : Is it fair for the City to use property values to determine electricity tariffs?


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