Polokwane Muni tariff increases hit close to home
Residents share how they will be affected by these increases.
A local PhD candidate in economics at the University of the Witwatersrand, Baneng Naape, is of the view that the tariff increases by the Polokwane Municipality will hit certain residents harder than others considering the demographics of the municipality.
“The less you earn, the higher is the percentage of your income to be spent on water and electricity, as these are necessities. Everyone uses electricity, regardless of whether you are employed or not, whether you are the main provider at home or what you may be earning.”
The municipality released its tariff increases for the 2021/22 financial year which have taken effect from July 1 and the new tariffs see an increase of 14,59% for electricity, 8,5% for water services and 4,6% each for sanitation, waste removal and assessment rates. The municipality has cited the cost of bulk purchases as a contributing factor to the increase in tariffs.
Naape says in one way or another, residents will be impacted by the tariff increase with some residents directly feeling the financial pressure while others will only experience it indirectly. It is important to take the demographics of the area into consideration and from his findings that are based on a Statistics SA survey, 45% of households are women-headed with women being the main provider. The second consideration would have to be that the average annual income in the municipality is R4 500 and lastly, that around 36% of the people in the area are said to be unemployed, he said.
Naape says the municipality’s indigent will be beneficial to those who quality: the policy provides for households with an income of less than R4 480 to receive 60kl of water, 100kw of electricity, 100% subsidy on refuse removal and sewage charges along with a 100% rebate on assessment charges.
It also makes provision for an 80% rebate for households that depend on pension or social grants not amounting to more than R9 490. Naape has urged residents to spend the larger fraction of their salaries on essential items as it is unrealistic to try and cut down on the use of water and electricity especially during winter, and during lockdown “when people are expected to practice good hygiene”.
We asked residents about their electricity consumption patterns: