KwaDukuza residents can brace themselves for increases between seven and eight percent in electricity, rates and refuse removal in the year ahead, on par with last year’s increases.
This was announced by KwaDukuza mayor Ricardo Mthembu, during the tabling of the 2019/2020 draft budget, which if approved, will bring an increase in KDM tariffs from the new financial year on July 1.
“Electricity tariffs have been budgeted to increase by seven percent subject to consultations from NERSA and the community. Bulk purchases have been budgeted to increase by eight percent.”
Mthembu said both rates and refuse removal charges were planned to increase by a total of eight percent.
“Rates and refuse is deemed to increase by six percent. It is submitted that an additional two percent rates increase is considered for ring-fencing to address energy losses, by installing smart meters. This means a total increase for rates will be an average of eight percent.”
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Electricity losses through illegal connections and infrastructure related problems cost the municipality R94 million in the 2016/2017 financial year.
To combat the problem, KDM is to spend R15 million on the installation of smart meters which will locate households that are illegally connected to electricity and disconnect them from the control room.
Along with outlying projects and cost management solutions for the year ahead, Mthembu announced a proposed capital budget (money allocated for service delivery) of R337 million.
However, DA caucus leader Madhun Sing said the party did not support the proposed budget.
“Although the proposed tariff increases are low in comparison to Ethekwini Metro, we have to be sensitive to the earning income of many KwaDukuza residents.
“Coupled with fuel prices, many people face a problem where tariffs are increased every year and their salaries are not. Even if it is just a few hundred rands a month, these increases are going to hurt.”
Sing said that while the municipality was being proactive with their solution to combat electricity loss by installing smart meters, they needed to take into account that not all energy losses were because of illegal connections.
“There are both technical and nontechnical losses and we need to also look for a solution to curb technical losses. Smart meters are expensive and it is a bill that will be footed by the ratepayer. Criminals are clever and it will be a waste if they learn how to bypass that too.”
Sing said most of the planned projects which focused on roads and electricity had been down-scaled. He advised that the municipality slow down on unnecessary spending.
“Employee-related costs are growing and we need to start employing people only when there is a need and not to drive a political agenda or to satisfy someone’s ego.
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