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Power tariff hike shock

SANDI KWON HOO SANDI.KWONHOO@ACM.CO.ZA

HARD-HIT city consumers will have to pay 15 percent more for electricity as from July 1. Property, refuse removal and water tariffs will increase by 5.3 percent and sanitation services by 4.9 percent.

Sol Plaatje Municipality’s operational budget for 2023/24 to 2025/26 is projected to generate R8.8 billion over the next three years.

This will be generated from service charges of R5 billion, rates of R2.1 billion, unconditional grants of R912 million and other own-revenue sources of R749 million.

The budget was tabled on Wednesday with a few objections from some councillors who pointed out that cash-strapped residents could ill-afford exorbitant electricity prices. It was indicated in the budget that the basic charge for electricity was not charged during previous years due to protest action during the 2018/19 financial year when a R260 basic charge was to be introduced.

“This compelled the municipality to undertake another cost of supply study with new tariff structures that will ensure 100 percent recovery of costs to provide electricity as a function and service delivery expectation by the public.”

The municipal manager, Thapelo Matlala, advised councillors to rubber stamp the budget and “sort out other technicalities at a later stage”, as the deadline for approval was May 31.

“The new tariffs will be implemented on July 1, so we have one month to deal with the capacity charge and engage with the former CEO of Eskom to account for claims that Sol Plaatje Municipality is charging the highest electricity tariffs in the country.”

The acting chief financial officer, Kenneth Samolapo, stated that electricity, water, sanitation, property and refuse removal tariffs were approved by council.

“Nersa approved the electricity tariffs and a cost of supply study was compiled. The tariffs are in line with the Nersa guidelines throughout the country.”

Boyce Makodi from the Kimberley Action Group stated that the electricity supply of residents was being blocked daily in an “inhumane manner” as they were unable to afford the current tariffs and high costs to unblock electricity boxes.

“Residents are in for a rude awakening on July 1 as they will be slapped with the increase plus the basic and capacity charge. The municipality must not be surprised if there is an increase in illegal electricity connections.”

He added that the budget was “steamrolled through” on Wednesday without proper consultation.

“We will meet with the mayor on June 8 because the community cannot be expected to accept these insane increases while there are non-existent services, coupled with prolonged rolling blackouts. The municipality must produce a plan of action to reduce load shedding.”

NEWS

en-za

2023-06-02T07:00:00.0000000Z

2023-06-02T07:00:00.0000000Z

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