EDITOR – I want to complain about the electricity tariff increases applied for this year, starting from July 1.
According to the respective tariffs for Tariff A and Tariff B, both increased by 15%, but the portion free units (only 50 units this year) caused a huge impact.
I did not buy yet but made some calculations.
For 600 units:
• Tariff A was R791, now R1 093, an increase of 38%
• Tariff B was R1 426, now R1 663, an increase of 16.6%
• Indigent was R791, now R1 002, an increase of 26.5%
For 200 units:
• Tariff A was R158, now R364, an increase of a staggering 130%
• Tariff B was R489, now R 597, an increase of 22%
• Indigent was R158, now R273, an increase of a staggering 72.6%
This is really unfair.
Who is going to suffer the most?
It is the people using less electricity and the indigent.
This really was not well thought through.
It looks like nobody did the actual calculations before the time and complained about the increased percentages.
Now, you left this to residents to complain all for the same above reasons.
Do you think you can afford to pay for these increases?
Maybe you can afford it, but not us the residents.
What was the reason behind it?
What happened to the government to keep inflation between four percent and six percent?
Ekurhuleni is nowhere close to this.
JOHANN LOUW
EDITOR’S COMMENT: The letter was sent to the spokesperson for the City of Ekurhuleni Zweli Dlamini for comment.
He commented as follows:
It is important that we clarify that there is no truth in the claim that we have decreased the free basic electricity to the deserving indigent community of Ekurhuleni.
The 100kWh is still available and has not been reduced by the Council.
While there may have been a view considered for such to happen considering the difficult financial climate as a result of Covid-19, such a resolution was never taken by Council and therefore there is no such.
To provide relief to our residents and ratepayers, in the last budget address, the tariffs within the control of the City were not increased.
We plan to continue with this trajectory despite the tough financial times.
However, to strike a balance between the affordability of tariffs to the hard-pressed residents and the financial sustainability of the City, the tariffs had to be reviewed.
The reviewed tariffs are as follows:
• The new valuation roll will be effective from July 1, 2021.
Due to the fact that the value of properties has increased, and new properties came into the valuation roll, ratepayers will somewhat be pleased to know that the assessment rates remain unchanged, meaning that there is no increase.
• Rand Water indicated a tariff increase of 5.8%.
However, due to cost implications to the City for water storage, infrastructure renewal and refurbishment, repairs and maintenance and reticulation, we are introducing a further 2.2% taking the total tariff increase to eight percent.
• ERWAT proposed a tariff increase of 17% for sewer purification.
To recover these costs, this budget proposes a sewer tariff increase of eight percent for domestic users and 17% for industrial users.
• A seven percent tariff increase in refuse removal is proposed.
Waste management services, with the exception of landfills, are in essence transport and labour-intensive operations and are therefore sensitive to the substantial and constant increases in the price of the oils and lubricants, fuels, repairs and maintenance of the fleet and labour costs.
Although this service is within the control of the City, there are input costs that are outside its control.
• The electricity tariff increases are based on NERSA’s approval of Eskom’s application.
Municipal Guideline Tariff – Consultation Paper dated March 12, 2021, proposes tariff increase of 17.8% bulk purchase increase to municipalities.
Municipalities are allowed to make a tariff increase of 14.59% to their consumers.
The City has aligned its tariff structure to Eskom so an increase of 14.59% was proposed.
The City will have to introduce measures to subsidise the shortfall.
Cognisance should be taken of the fact that Tariff A IBT (inclining Block Tariff) was reverted to 100kWh free basic electricity to all customers on Tariff A IBT.
With this change, customers on tariff A IBT will see a 15.06% increase as this tariff follows Eskom’s increase to ensure that CoE and Eskom neighbouring customers share the same rates.
The cost-effective crossover point between the residential tariff A IBT and tariff B is 819kWh units.
The 50kWh free basic electricity reduction and only to registered indigents, as previously published, will come into effect from July 1, 2022, for the 2022/23 financial year.
• Sundry tariffs increased by 3.9% in line with the CPI guideline provided by National Treasury.
• Burial and cemetery tariff increase by six percent to residents and 10% to non-residents.
The tariff for cemeteries and crematoriums was not increased last year, although the costs thereof increased.
• Municipal bus services tariff will increase by an average of 3.9% to 4.15%, depending on the trip.
• Tariffs for local facilities and amenities, such as library and information services, library auditoriums, arts, culture and heritage facilities do not increase.
Although the economic environment has changed drastically since early last year, the “pro-poor” agenda we adopted when we came into office in 2016 remains on track.
Once again, the City is committing to providing a social package to the most vulnerable members of our society at a cost of R5.7- billion to the municipality in the 2021/22 financial year.
We do this because we still believe in a better life for all and understand what this intervention means to those of our households who have fallen on hard times.
This budget proposes the following indigent relief programme as an effort to lessen the economic burden on our fellow citizens:
• 100% rebate on assessment rates
• Free refuse removal
• First 100kWh of electricity per month is free
• First 6kl of water and sewer per month is free. As with the provision of electricity, this is a forced reduction from the 9kl that was provided in the past
• Special rates on emergency services, such as ambulance and fire-fighting
• Free indigent burial.
This is the reality of the situation and the City tried hard to absorb some of the pressure so that we do not overburden our ratepayers.
