POLOKWANE – The city council last week approved tariff increases for the 2015/16 financial year, starting on July 1.
The following tariff increases were recommended to council for approval: electricity – 12,2%, water – 10%, sanitation – 10% and refuse removal – 10%.
Eskom has increased bulk purchases by 14,2%, but municipalities are only allowed to increase their tariffs by 12,2% as per the guideline supplied by national treasury.
The chairperson of the finance and local economic development portfolio, Rasepuetja Molepo, said the decision to increase tariffs was not an easy one considering the difficult economic circumstances being experienced by most people. He said the municipality had to ensure it remained financially sustainable in order to provide the services and maintenance that were required. “We have to do this, but also have a responsibility to ensure municipal services are affordable to all communities,” Molepo said, adding that the municipality had taken into consideration input from all the consultations and assured all the communities that the tariffs would be used to contribute to the sustainable provision of services.
He said the municipality considered the economic, social, and financial factors in determining the increases. “This is with exception to electricity where the National Energy Regulator of South Africa had given Eskom the right to increase their rates. Residents and other stakeholders were consulted on the proposed tariff increases for the 2015/16 financial year during the municipal wide IDP and budget consultation meetings in April 2015.”
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