POLOKWANE – Residents in the city will have to tighten their belts further as the Polokwane Municipality is set to implement new tariffs on July 1.
Municipal spokesperson Thipa Selala said council approved the new tariffs for the 2023/2024 financial year following a public participation process in April.
“Due to the global and domestic economic downturn, the municipality had to increase its water and electricity tariffs by a block percentage ranging from 6% to 15% and 15.10%, respectively, while all other services such as rates and taxes were increased by 6% (which is the inflation rate at the time of budget preparation in line with circular 123 plus 0.7%),” his statement read.
Tariffs
The rate of increase in electricity is in line with NERSA guidelines while the increase for water services is in line with an increase from the Lepelle Northern Water.
– Electricity: 15.10% (as per Nersa guide).
– Water services: 15.75% (sliding scale for residential)
– Sanitation: 6%.
– Waste Removal: 6%.
– Assessment rates: 6%.
Indigent support
As with previous years, Selala said council made provision for free basic services to qualifying residents who cannot afford to pay for services.
This subsidy is budgeted at R272m and includes the following:
– Free 6Kl of water.
– 100kWh units of electricity.
– 100% subsidy for refuse removal and sewerage charges.
– 100% rebate on assessment rates.
“To qualify as indigent, the household income must not exceed R5 160 per month,” he said.
Selala added that when approving the new tariffs, council took into consideration the current socio-economic challenges including ongoing difficulties in the national and local economy.
“These include the increased cost of bulk purchases from water and electricity bulk providers that are placing an upward pressure on service tariffs. These tariff increases are determined by external bodies and their impact on the municipality’s tariff structure is beyond council’s control,” he said.
Selala said the new tariffs are necessitated by the municipality’s obligation to continue with the provision of essential services like water, electricity, refuse removal, sanitation and many others and to further develop communities.
