18,49% electricity tariff shocker as proposed budget revealed

The 18,49% hike in the electricity tariff, proposed in the Endumeni Municipality’s 2023/24 draft budget, has elicited an outcry from business people and residents.
The double-digit increase was announced at a series of ‘roadshows’ by the Municipality and was met with horror.
“How the municipality came up with such an untenable increase is puzzling,” commented FC Bester of the Endumeni Civic and Residents Association. “This will be the death of many small businesses that are already struggling and will lead to more unemployment.”
Others who contacted the Courier said the hike will also ‘cause more people to tamper with their meters which will further fuel the rampant theft of electricity.’
However, Mayor S Ndlovu said at the public meetings that the increase in the tariff was ‘to ensure a sustainable service’.
Other tariff increases include 5% on refuse removal while, Mayor Ndlovu said there would be no change in the rates tariff due to the new valuation roll due to come into effect on July 1. He said this ‘would actually represent a 5% decrease’.

The total budget comes in at R443-million of which 35,6% goes to salaries – which is well above the recognized 32% norm.

The proposed capital budget is R25-million all of which are funded from Government grants. Mayor Ndlovu said that ‘due to financial constraints, no internal funding for projects have been catered for’.
Some of the proposed projects include R5-million for the Marikana road, Glencoe, a total of R10-million for phases one and two for the new Dundee cemetery and R4-million to upgrade the Sithembile sports stadium.
A R5-million energy efficiency grant will go towards putting up solar lights in wards 2, 4, 5 and 7.
Mayor Ndlovu said the theft of electricity – running up to over R37-million for the first eight months of the financial year, July 2022 to February 2023, has put huge pressure on municipal finances.
Over 39% of electricity provided to Glencoe is stolen and 24% in Dundee.