File picture: Shelley Kjonstad, African News Agency (ANA)
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.”
DA councillor Chris Whittaker opposed the capacity charge, stating that residents were being punished for consuming more electricity.
He recommended that the capacity charge be removed.
ACDP councillor Roddy Loff believed the budget would prejudice the poor.
“We do not support the budget. Poor people who do not qualify for indigent status are excluded from the system. There is a feeling of distrust in the political system and how Sol Plaatje Municipality is managing its affairs.
“Material losses increase yearly and service delivery is on the decline and ratepayers are not getting value for what they are paying for.”
He rejected the 15 percent electricity increase.
“Those who are in a position to pay are being punished with massive increases. The tariff hike is unaffordable while the prices of food, diesel, petrol and the repo rate have increased and the municipality has not introduced any renewable energy into the mix.”
EFF councillor Kenneth Kock welcomed the intervention from National Treasury to ease the Eskom debt but pointed out that council had no clear plan on how it would increase its collection rate to 80 percent.
“The only steps taken are to block the electricity supply of poor residents. We do not support an electricity tariff increase.”
ANC councillor Frikkie Banda added that the municipality was charging the highest rates in the country.
“There was supposed to be an imbizo where Eskom was supposed to account. We do not want to hear that we have dug a hole for ourselves. We need to be realistic and honest and provide clarity to the community.”
PA councillor Emile Adams was also not in favour of the electricity increase.
“Too many people are living below the poverty line and have to contend with load shedding. Surely the municipality can do something to prevent cable theft. The community is confused about whether they are being subjected to load shedding or cable theft. The municipality promised to send out security patrols to patrol cable theft, yet I do not see anything of the sort.”
Sol Plaatje Service Delivery Forum councillor Shadric Metsimetsi did not support the budget and recommended that a solar plant be established to ease the burden on the grid.
GOOD councillor Elizabeth Johnson supported the electricity increase.
“The 15 percent increase is below the Nersa guideline of 18.6 percent. We can still hold an imbizo after the meeting.”
FF+ councillor Kobus van den Berg gave the thumbs up for the budget, saying that if it was not approved the municipality would have to find alternative sources of income.
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.
“We also demand an investigation into the R500 million availed to Sol Plaatje Municipality by the provincial government in 2021 to improve services.”