tree nav

Utilities


Expand/Collapse all

Water Connection

South Africa is a water-scarce country with an annual per capital water availability of approximately 1,200 m3 per capita per annum (15% of which is supplied by government-owned water resources). Average annual rainfall is 497 mm, compared to a world average of 860 mm and this rainfall is unevenly distributed, with 65% of the country receiving less than 500 mm annually and 21% receiving less than 200 mm. There are also frequent droughts that may last for several years. This picture is compounded by high annual potential evaporation of up to 3000 mm in some areas. As a result of the country’s topography and rainfall, 60% of river flow comes from 20% of the land. However, South Africa has a relatively well-developed water infrastructure, with a network of dams and inter-basin transfer schemes across the country. Per capita storage is considerably higher than for any other African country. This infrastructure has allowed the country to maintain agricultural irrigation through dry periods. Nonetheless, many of the catchments in the country are facing water stress, with water demand reportedly exceeding supply.

The local municipalities generally provide water connections. Connection times are usually fast, with the exception of those sites not already serviced.

  • The time required for connection to serviced sites ranges from one day to two weeks; and
  • Times required for connection to sites that are not serviced, range from one month to one year or even more.

The following table is an extract of rates for the 2014/2015 tariff year, applicable to local the Durban Metropolitan Municipality. The rates are exclusive of VAT.

ELECTRICITY

Electricity rates for Durban as at 1st July 2014 (Excluding VAT):

Small Business

Scale 1 

Energy 







Service charge

130.23  cents per unit







R170.41 per month

Scale 2







(002) 







(Obsolete)

Energy – Basic







Energy - Surcharge







Service charge

55.65  cents per unit







132.31 cents per unit







R174.05 per month

Scale 2







(021)   







(Obsolete)

Energy – Peak







Energy – Off-Peak







Service charge

187.96  cents per unit







55.65  cents per unit







R174.05 per month

Scale 5/6/7







(Obsolete)







Energy







Service charge

Minimum Charges apply for Scale 6 & 7

135.53  cents per unit







R174.05 per month

A monthly minimum charge of R 67.32 + VAT per KW of installed capacity but not less than R 215.59.

Scale 10/11

Energy

144.60 cents per unit

CTOU

Low Demand Season







Peak, Standard, Off-peak

High Demand Season







Peak, Standard, Off-peak

Service Charge

Network Demand Charge

Network Surcharge (Only applicable if kVA equal to or greater than 110 KVA

113.26;  91.11; 53.00 cents per unit

229.57; 114.86; 55.95 cents per unit

R243.10 per month

R49.00 per kVA

25% - applicable on energy and demand components

 

Large Power Users

ITOU

Low Demand Season







Peak, Standard, Off-peak

High Demand Season







Peak, Standard, Off-peak

Service Charge







Access Charge







Maximum Demand







Voltage Surcharge

72.80; 51.94; 35.62 cents per unit

211.15; 68.44; 39.61 cents per unit

R2 659.05







R22.25







R70.50







Depending on Supply Voltage

Low Voltage 3 Part







(Obsolete)

LV3 –Part

Energy Charge







Maximum Demand

Restricted Demand Discount

Service Charge

55.51 cents per unit







R 259.68 per kVA

R 56.02 per kVA

R 947.27

Residential tariffs

Scales 3, 4, 8 & 9

 

 

Scale 12

Single and 3-phase supply

 

 

Free Basic Electricity Customers

115.32 cents per unit + VAT







Service charge included in unit rate. Deposit to cover 2 to 3







months usage required

 

First 65 units free and the remainder of the 150 units at 82.58 cents per unit.

Residential Embedded Generation

Scale 15

Import Energy Charge







Export Energy Charge

 

 

Service Charge

115.32 cents per unit + VAT







74.96 cents per unit + VAT







Energy exported is limited to the amount of energy imported – Excess exported energy will be forfeited

R 100 The Service charge is only applicable where the nett consumption is less than 300 kWh per month

Electricity Connection

Eskom, a state-owned enterprise, generates approximately 95% of the electricity produced in South Africa, and 45% of electricity used in Africa. Eskom sells electricity to local authorities, who act as redistributors. The local redistributors, in turn, supply the majority of electricity to end-users. Eskom also sells directly to the end-user:

  • When the local redistributor is unable to meet the needs of heavy electricity users (20 kilowatts or more); or
  • When no local redistributor has jurisdiction over a particular geographic area.

The application and installation procedures are simple and swift for a site with an existing structure and an adequate electrical supply already in place, i.e. where no equipment upgrades or added infrastructure are required. An application for the supply of electricity should be submitted to the nearest Eskom sales office at least seven days prior to the requested connection date. Connection fees vary, depending on the category of service (standard users, off-peak users or peak users). A cash deposit or bank guarantee may also be required to cover costs in the event of non-payment.

Eskom is also able to meet the needs of investors who require capacity upgrades, such as energy-intensive factories. For capacity upgrades, the waiting time depends on the availability of the size of transformer required. Costs also depend on the size of the upgrade. The utility is also able to supply power to ‘greenfield’ sites in serviced areas. However, investors should prepare their applications well in advance. Installation can take up to 24 months for large projects, as some of the connection activities may require a separate Environment Impact Assessment process, and/or application for land rezoning. Investors may submit an application for the supply of electricity or a letter of requirements to the nearest Eskom office. Eskom will provide an estimated quote of installation costs, which is negotiable, within 14 days of the initial application.

Telkom Connection Fees for Businesses
Telkom usually provides a telephone line within one week if connection lines are in place. The company will usually dispatch a sales representative for any request for more than three lines. An investor must provide a surety from a South African citizen, failing which the investor will be required to pay a deposit.

If an equipment upgrade is required, Telkom can upgrade a facility within four months, depending on the need. No additional fees are required unless the upgrade is not in Telkom’s strategic plan. If the upgrade is not within its strategic plan, Telkom will base its fees on a cost recovery basis. No special forms are required to be completed.

Telkom business connection fees for 2011/2012 range from R521 for an analogue line to R49 030 for ISDN (integrated services digital network). Special rates exist for longer-term contracts, with a one-year minimum rental period for a single link costing R37 091 and a 5-year minimum rental period costing R14 837. Owing to scale economies, multiple links within the various contract periods are less costly.

Estimated duration of landline and internet application

Procedure

Estimated duration

Complete application form

2 days

Credit vetting

5 days

Approval of order

2 days

Other value add services (ADSL line)

14 days

Telkom provides different means by which an investor can receive telecommunication services in an unserviced area, but it requires approximately two to four months, depending on the type of solution. Radiophone systems are installed in a number of remote areas around South Africa, and KwaZulu-Natal.

Telkom call rate charges, 2011/2012

 

Minimum charge
Rand (incl VAT)

Rand Per second
(incl VAT)

Minimum charge
Rand (incl VAT)

Rand Per second
(incl VAT)

 

Standard Time: Mon – Fri, 07:00 to 19:00

Call more time: Mon – Fri, 19:00 to 07:00, and Fri, 19:00 – Mon 07:00

Conventional calls (the minimum charge will not apply to on-net dial-up internet calls to ISPs)

Local (0 - 50km)
Long distance (>50km)

0,650
0,650

0,00724
0,01083

0,650
0,650

0,00344
0,00542

Source: Telkom (2010), 2011/2012 price list

For full details, please go to: http://www.telkom.co.za/general/pricelist/downloads/tarifflist_Aug11.pdf

Municipal government financial years run from June to May, while provincial and national government financial years run from April to March.

Telecommunications rates are expected to reduce as the second network operator begins to make inroads into Telkom's current monopoly. The table below gives standard connection and communication rental rates offered by different mobile communication service providers and the fixed line provider, Telkom. 

Service

Service Provider

Telkom

MTN

CellC

Vodacom

VirginMobile

Residential / Private

 

MyCall 100

EasiChat

4U

Prepay

Installation/Connection (R)

468.05

-

-

97.00

-

Rate charge (R)

131.00/mth

2.89/min

2.85/min

185.00/mth

2.55/min

 

 

 

 

 

 

Business/Contract

 

MTNAnyTime

CasualChat

BusinessCall

TopUp99

Installation/Connection (R)

468.05

-

114

-

 

Rate charge (R)

174.00/mth

2.30/min

115/mth

2.85/min

2.35/min

 

For more on telkom rates contact 1023 to get more on different time rates and distance of calls.
Vodacomwww.vodacom.co.za MTN: www.mtn.co.za
Virginmobile: www.virginmobile.co.za Cell C: www.cellc.co.za

The municipal property rates are calculated based on the value of the property. For the financial year 20012/13, the rates structures for eThekwini Municipality was as depicted in the table below:

RATES

EThekwini Municipality, property rates 2012/2013

Property Category

General Randage (cents per rand)

Residential (urban & rural)

0.914

Agricultural

0.228

Industrial

2.674

Business and Commercial

2.072

Public Service Infrastructure

0.228

Vacant Land

4.376

Unauthorised or Illegal Development / Use

4.376

Source: eThekwini Municipality (2010), Tariffs 2011/2012
The table above shows eThekwini Municipality property rates for 2012/2013. The rates are calculated on an annual basis, based on the value of the property (as determined by the municipality for rating purposes), but are payable at a monthly rate. However, businesses may decide to prepay the annual rates.

For instance, an industrial building valued at R1 million will have a rates bill of 2.674 cents per rand, an equivalent of R26,740 per annum. The municipality rates cover services such as waste collection, street lighting and grass-cutting (if required).

Multiple-use properties are usually dealt with in accordance with the Municipality’s Rates Policy.


Property type

Municipal area

eThekwini

Msunduzi*

uMhlathuze

 

 

Buildings

Residential

0.000100 – 0.002089

0.017169

0.00468

Business & commercial

0.000100 – 0.006266

0.017169

0.00936

Industrial

0.000374 – 0.002173

0.017169

0.00936

 

Land

Agricultural

 

0.087196

0.00117

Agricultural (business)

 

0.087196

0.00936

Vacant land

0.000100 – 0.010444

0.087196

 

* Msunduzi figures are for 2007/08 financial year

The eThekwini property rates range depending on the location of the property, with the outer areas more affordable than the central business district.

For more information on the rates and other tariffs, please visit the municipalities’ websites:

eThekwini (Durban): www.durban.gov.za

uMhlathuze (Richards Bay): www.richemp.gov.za

Msunduzi (Pietermaritzburg): www.msunduzi.gov.za

***********************************************************************

1. (a) In terms of the Rates Policy 2009/2010 adopted by the Council on 2009-02-26
the Municipality may levy different Rates for different categories of Property. 
 
(i) The rates randage for the financial year 1 July 2009 to 30 June 2010 for the eThekwini Municipality was assessed and levied for the following categories at:
   •  Residential at 0.9 cents in the Rand; 
   •  Agricultural at 0.24 cents in the Rand;
   •  Industrial at 2.58 cents in the Rand;
   •  Business and commercial at 2.01 cents in the Rand;
   •  Public service infrastructure at 0.24 cents in the Rand;
   •  Vacant land at 3.78 cents in the Rand;
   •  Unauthorised or illegal development at 3.78 cents in the Rand.

(ii)  Multiple Use Property will be dealt with in accordance with the Rates Policy.

2. In accordance with the Rates Policy 2009/2010 the following  reductions on the market value of the property and the rebates on the rates payable and exemptions, be and are hereby granted:

(a) In respect of residential property, in addition to the statutory reduction of R 15 000, a further reduction of R 105 000 be and is hereby approved; 

(b)(i) that in addition to the reduction in 2 (a) above a rebate not exceeding R 2 520 or such lesser amount as may be otherwise be payable, be and is hereby approved for pensioners, disability grantees / medically boarded persons and child headed households. (Note: the rebate of R 2 520 equates to an additional reduction of R 280 000 on the market value);

(ii) That it be and is hereby resolved not to place a maximum limit on the value of the property, in order to qualify for the rebate in (b) (i) above.

(c) That a reduction of R 30 000 on vacant land be and is hereby approved;

(d) That a rebate of 50% be and is hereby granted to schools not for gain;

(e)  Properties owned by the Municipality or occupied for development housing are  exempt from rates except properties owned by trading services;

(f)  Public Service Infrastructure will be not rated on the first 30% of market value

(g) Proclaimed nature reserves / conservation areas will be exempt from rates;

(h) That a rebate of 50% be granted to all Bed and Breakfast undertaking, that has a valid Registration Certificate issued by Ethekwini Municipality;
 
(i) That a rebate of 25% is and hereby approved to all Guest House undertaking which has a valid Registration Certificate issued by Ethekwini Municipality.

3. In accordance with the Rates Policy 2009/2010, the following apply to Special Rating Areas:

(a) That the Special Rating Areas as indicated hereunder be and are hereby established;

(b) That in respect of Special Rating Areas additional rates, as indicated hereunder, be approved and levied in respect of each category of property within the boundaries of the Special Rating Area. 

Special Rating Areas
Residential
Business & Commercial
Industrial
Vacant Land

(a) Precinct bordered by Monty Naicker Road (Pine Street), Dorothy Nyembe (Gardiner), Anton Lembede (Smith) and Dr Yusuf Dadoo (Broad) Streets.

0.000910

 

0.0027431

 

0

 

0.004552

 

b) Precinct bordered by Soldiers Way, Dr AB Xuma Street (Commercial Road) , Florence Nzama Street (Prince Alfred Street) and Braam Fischer Road (Ordnance Road).

0

 

0.000321

 

0.000374

 

0.00534

 

c) Precinct bordered by Dorothy Nyembe Street (Gardiner Street), Margaret Mncadi Avenue (Victoria Embankment), Beach Walk and Anton Lembede Street (Smith Street).

0

 

0.000321

 

0.000374

 

0.00534

 

d) Precinct bordered by Soldiers Way, Braam Fischer (Ordnance), Sylvester Ntuli (Brickhill) and K E Masinga (Old Fort) Roads.

0

 

0.000321

 

0.000374

 

0.00534

 

e) Precinct bordered by O R Tambo Parade (Lower Marine Parade), West Street Mall, Rutherford and Gillespie Streets (South Beach Area).

0.001051

 

 

0.003152

 

 

0

 

 

0.005253

 

 

f) Umhlanga Promenade Precinct bordered by Ocean Way (South), Lot 430 (North), Lagoon Drive (West) and the Indian Ocean (East).

0.000621

 

 

0.001862

 

 

0.002173

 

 

0.003104

 

 

g) Precinct bordered by Burlington Road, Burlington Drive, Nagel Road, Windsor Road, Midmar Road and Henley Road.

0.002089

 

 

0.006266

 

 

0

 

 

0.010444

 

 

h) Umhlanga Village bordered by Flamingo Lane, Ocean Way, Lagoon Drive, McCauland Crescent, Weaver Crescent and M4 Highway.

0

 

 

0.001891

 

 

0

 

 

0

 

 

i) Giba Gorge bordered by N3 Highway (South), Reservoir Road, Jan Smuts Avenue, Galloway Lane, Mountbatten Place, Alexander Drive, M13 Highway (East), Portion 157 of Clifton (North) to Saint Helier Road (West).

0.000100

 

 

0.000100

 

 

0

 

 

0.000100

 

 

4. That the following phasing in of rates be and are hereby approved subject to Section 21 of The Local Government: Municipal Property Rates Act 6 of 2004:

(a) A rate levied on newly rateable property must be phased in over a period of three financial years, with the following phasing in discounts:
(i)   75% for the first financial year;
(ii)  50% for the second financial year;
(iii) 25% for the third financial year. 

(b) A rate levied on property belonging to a Land Reform Beneficiary or his or her heirs must, after ten years from the date on which such beneficiary’s title was registered in the office of the Registrar of Deeds, be phased in over a period of three financial years, with the following phasing in discounts:
(i)   in the first financial year; 75% of the rate for that year otherwise applicable to the property;
(ii)  in the second financial year; 50%  of the rate for that year otherwise applicable to the property;
(iii) in the third financial year; 25%  of the rate for that year otherwise applicable to the property. 

(c) A rate levied on newly rateable property owned and used by organizations conducting Specified public benefit activities and registered in terms of the Income Tax Act for those activities must be phased in over a period of four financial years, with the following phasing in discounts:
(i) 100% in the first financial year;  
(ii) 75% in the second financial year;
(iii) 50% in the third financial year; 
(iv) 25% in the fourth financial year.