Shocking hikes in tariffs to have drastic effect on local households
The DA welcomed the effort to subsidise the electricity tariff increase to a lower rate than proposed by Nersa but are worried about the excessive increase on water tariffs.
POLOKWANE – Polokwane Mayor John Mpe recently tabled the municipality’s 2023/24 Integrated Development Plan (IDP) and Budget, reflecting increases for water and electricity that will have a drastic effect on households that are already under stress due to the rise in inflation as well as the recent hikes in interest rates.
According to the draft budget, all tariffs for municipal services except water and electricity, will increase by approximately 5,3%.
Water will increase by 15,75% (Lepelle Northern Water’s bulk price plus 0,75%) and electricity also with 17%.
The total budget will be R4,8bn, with R4,2bn for operational expenses and R958m for capital expenditure and according to the report before council, a number of challenges had an influence on the budget.
The ongoing difficulties in the national and local economy, the increased costs of bulk water and electricity, National Treasury’s austerity measures with minimal growth in grant allocations and high backlogs in service delivery projects and further demands due to urbanisation were some of the factors cited.
The economic slowdown and unemployment impact on collection rates and the limited availability of own funding and the high inflation due to the European war also had an influence.
According to Mpe, the reduction in operational expenses and in particular where more own staff could be utilised instead of external service providers and downscaling of own funded capital projects are some of the measures to contain the budget, and will also include allocation of resources to revenue generating projects and to impose hefty penalties for consumers who break and illegally connect meters.
To sustain cash flow, credit control and cut-offs will continue on a daily basis (except Fridays) with a standby team to assist customers willing to settle their debts after hours.
Indigents will enjoy some relief, amounting to R272m.
Households with a combined income not exceeding R4 700 per month, child headed families and people with disabilities will receive 6Kl of water, 100 units of electricity and refuse removal and sewerage free of charge. A 100% rebate on assessment rates will be applicable in some cases and owners of residential properties who are dependent on social grants with a combined income not exceeding R10 400 per month will qualify for an 80% rebate.
The DA welcomed the effort to subsidise the electricity tariff increase to a lower rate than the 18,65% proposed by Nersa.
“We are, however, worried regarding the excessive increase on water tariffs, namely 15,75%, where the municipality wants to implement an increase of 0,75% on top of the already excessive increase of 15% from LNW,” DA caucus leader Jacques Joubert said.
Read more: Local economist says approved electricity tariffs will affect all
“We feel the proposed increases should be hastily addressed by the mayor as residents cannot afford double digit increases on water and electricity. This increase for water would leave a bitter taste in the mouth of residents as still many residents go days and sometimes weeks without a constant supply of water to their homes,” Joubert stressed.
“In general, with the city dead set on becoming the first metro in Limpopo, there would need to be a concerted effort by the municipality to adequately implement credit control and an increased effort on revenue generation by the municipality if it is to continue maintaining the current levels of service delivery, never mind the improvement thereof. The current debt collection rate of 85% will not do it,” Joubert reckoned.
Joubert implored residents to attend the planned IDP and Budget public participation sessions in their respective clusters in huge numbers.
“Residents need to voice their concerns and demand that these sessions should not merely be compliance sessions but sessions that give practical input and outcomes into the city’s budget for the coming year,” Joubert explained.
After finalisation of the public participation process, the final budget will be tabled for adoption before implementation on 1 July and the first round of sessions took place in the respective clusters during the last week.
