Sol slates ratepayers for ‘splurging’ on DStv

SOL PLAATJE Municipality has berated residents for complaining about high electricity prices while they continue to pay for “luxuries” such as DStv subscriptions.

Community meetings will convene next week in response to widespread dissatisfaction over the electricity tariffs that were increased by 10.6 percent on July 1.

A senior municipal official, who refused to have his name quoted, pointed out that ratepayers could not expect “electricity for free” and that they were obligated to pay for goods and services.

“The majority of people in informal settlements have DStv. How can they afford DStv when they can’t pay for electricity?” the official asked.

He instructed the DFA to “go to the budget on the website” to look for the answers to media enquiries.

He stated further that the municipality was compliant and its cost of supply study had been approved by the National Energy Regulator of South Africa (Nersa).

“The cost of supply study is valid for five years. Nersa is the ultimate authority as to how much people must pay.”

According to the 2024/25 budget, the municipality will hold back 30 percent of non-indigent households and 10 percent from indigents who are in arrears with their electricity bills when they top up their energy units.

The municipality has set aside a budget of R897 million towards the bulk purchase of electricity for the medium-term revenue and expenditure framework.

Inactive meters that have not bought electricity for 90 days will be blocked and audited through physical verification and inspected for tampering or bypass.

Clients will have to provide reasons why their metres have not been loaded for more than three consecutive months.

It was indicated that the municipality would have to recover the costs to supply electricity to the public after the R260 basic charge was kept in abeyance due to protest action in 2018.

The report stated that remedial action would have to be taken because the basic and capacity charge was not implemented on July 1, 2023, as planned. This would result in an audit query for the 2023/24 financial year.

Boyce Makodi from the Kimberley Action Group said community meetings would be held in various areas to discuss the way forward.

“A storm is brewing as it appears that the increases are here to stay and that there will be no concessions. Indigents’ electricity will increase by 10.6 percent while those making use of 20 amps will be slapped with a 14.17 percent increase. The 60 amp category will increase by 10.33 percent, along with the 24 percent basic and capacity charge,” said Makodi.

He added that it was “inevitable” that the basic and capacity charge would have to be implemented this year, so that the budget could be funded.

“Residents will feel the pinch at the end of the month.”

The provincial chairperson of the National African Federated Chamber of Commerce (Nafcoc), Abraham Malo, warned that small and emerging businesses would be the hardest hit by the high electricity tariffs.

“Around 30 percent of tuck shops, spaza shops, barbers and salons will be forced to close their doors or lay off staff, which will result in more unemployment. This in turn will affect the ability of households to pay for their electricity, while the local economy will suffer,” said Malo.

He believed that the electricity increase should be in line with inflation of between four to six percent.

“The municipality is quick to block the power of residents in arrears while government departments and big businesses who owe millions are only temporarily switched off. Businesses are still recovering from the Covid-19 pandemic and are the ones providing jobs to the local community, so that they can put food on the table. Once these businesses close down, it paves the way for the mushrooming of illegal businesses who do not have permits and omit to pay any rates and taxes.

“It appears as if the municipality is trying to generate revenue through the sale of electricity and cover the wage bill of officials amounting to R950.8 million. However, if businesses close, it will negatively affect the economy.”

Malo recommended that the municipality should form a social pact with businesses and local communities to accommodate their needs so that electricity could be supplied at an affordable rate.

“It will be mutually beneficial because more ratepayers will pay for their services and more investors and businesses will be attracted to contributing towards growth and development in the city.”

The chief executive officer of the Northern Cape Chamber of Commerce and Industry (Nocci), Sharon Steyn, was also concerned that struggling local businesses would be forced to close their doors as they would be unable to keep up with rising electricity prices.

She pointed out that the municipality submitted a cost of supply to Nersa that was conducted in 2021.

“Cost of supply studies should be calculated on a yearly basis.

“Should the basic and capacity charge be introduced, complications could arise. Ratepayers will have to pay a R200 per month fee before they purchase any units, while they will receive less units per rand.”

Steyn indicated that businesses were willing to work together with the municipality to find a sustainable solution.

Various home businesses indicated that they would not be able to afford the increases and they would lose clients and customers if they increased their prices.

“We cannot operate our businesses without electricity and will struggle to cover our overhead expenses.”