The City of Tshwane has been approached by many communities requesting a flat rate to be implemented regardless of services consumed. Unfortunately, a flat rate is not under consideration and will not be implemented in the City of Tshwane. The City cannot provide services without receiving the required income to cover the cost. The idea of a flat rate is neither authorised in the Tariff Policy or the Council-approved tariffs, nor is it cost-effective.
It must also be noted that the entire government value chain does not incorporate a flat rate principle. A case in point is the City of Tshwane’s agreements with Eskom and Rand Water, which are based on consumption and not a flat rate.
Important directives are contained in the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000), as amended. Of particular importance is Section 74, which requires the City to have a tariff policy that must recognise the following principles:
- Users of municipal services should be treated equitably
- Payment must be based on the use of the service
- Tariffs must reflect the costs of providing the service
- Indigent households must at least have access to basic services
While the City has a responsibility to address affordability concerns, it is equally the responsibility of consumers to manage their consumption within affordable levels.
The City encourages customers to make use of its social assistance programmes that are aimed at assisting customers who are not able to pay for services. It is, however, important to note that each case is dealt with on an individual customer basis.
The financial health of the City largely depends on customers paying for services consumed. This will enable the City to deliver quality services to Tshwane residents.