[TAKE NOTE] New tariffs to come into effect this July
Polokwane residents, like the rest of South Africa, can expect to pay more for electricity and water as from the beginning of the new financial year in July.
POLOKWANE – This will bring the increase in electricity tariffs for the last four years up to 53,2%. Water tariffs, since 2018/19, would then have increased with 34% should the proposed increase be accepted.
The draft budgeting process started again, and this was one of the issues discussed during the recent council meeting, where the total draft budget of R4,8 billion for Polokwane for the 2021/22 financial year was tabled.
Refinement and the finalisation of the budget will follow after a public participation process and final guidelines provided for the electricity increases by the National Energy Regulator, Nersa. Assumptions taken into account for the 2021/22 draft budget, and Medium Term Revenue and Expenditure Framework (MTREF) budget, except for the increase of electricity, which will depend on guidelines as per Nersa, were proposed increases of water (8,5%) and sanitation, waste removal and assessment rates increases of 4% each.
These proposed increases are to be aligned against the possible 15% increase in electricity tariffs, a 5% increase in the tariff of bulk water purchases, a 4,9% increase in municipal salaries and allowances and Consumer Price Index increase in the prices of other materials and expenses.
Subsidies for indigents will remain at six kilolitre water and 100 units of electricity per month, and a 100% subsidy on refuse removal and sewerage charges, as well as on assessment rates.
This is for households whose income does not exceed R4 700 per month. The municipality also grants an 80% rebate on owners of residential properties who depends on pensions or grants provided the household income does not exceed R9 000 per month.
Revenue generated from service charges revenues comprise more than 40% of the revenue mix of the municipalities, and bulk purchases (water and electricity) make up 22,95% of operating expenditure.
The municipality will carry out the IDP/budget review consultation process from 1 to 29 April, and the public participation process of the IDP/budget process will follow after a newspaper advertisement releasing the adoption of the IDP/budget by Council, as well as where adopted documents could be located for perusal.
Comments could then be submitted for a 30-day period. Information will be published in local newspapers, the municipal website, and on social media. A dedicated e-mail address and WhatsApp line will be supplied for submitting comments. Highlights will also be communicated through radio stations.
