ETHEKWINI residents, still reeling from a massive fuel price hike this week, have been dealt another crushing blow with the announcement of the City’s proposed tariff hikes, some of which are well above the inflation rate.
The draft budget, which attempts to strike a balance between service delivery imperatives and responding to responsibility challenges, has been met by a storm of protest from residents and the DA opposition.
Residents face a proposed increase of 6.9 per cent in rates, the lowest in the country, a massive 15 per cent hike in water (15.5 per cent for businesses), a crippling 14.4 per cent increase in electricity, and 9.9 per cent hike each in sanitation and refuse.
Deputy Mayor Fawzia Peer said the increases were as a result of repairs and maintenance of infrastructure, the cost of addressing service delivery backlogs, the purchasing of bulk water and electricity services, the impact of capital spending on operating costs and employee-related costs.
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She said some tariff hikes and costs had been unavoidable due to the bulk tariff increases of water and electricity being higher than the rate of inflation, salary increases above inflation, and ensuring service delivery is not compromised.
She said the 9.9 per cent refuse tariff increase is due to additional areas being serviced, additional cleaning of the beachfront, CBD, and townships, and hence the increase above CPI could not be avoided.
The electricity tariff increase of 14 per cent is an indicative increase due to the 15.69 per cent increase expected from Eskom.
However, should NERSA further review the Eskom increase, the City will also review the tariffs.
The Deputy Mayor appealed to all residents to continue to utilise water and electricity sparingly and also encouraged residents to attend the budget consultations.
The Mayor together with Councillors will take the draft budget to the community for their input and suggestions, and it will then be adopted at the end of May.
Details of venues and dates will be advertised soon.
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