Proposal to increase utility tariffs by up to 10%

2017-05-17 06:00

TARIFF charges for water­, sewerage, rates, refuse and electricity will possibly increase by up to 10% for the 2017/2018 financial year, according to the draft budgets of the iLembe District and KwaDukuza municipalities.

According to the KwaDukuza Municipality, the proposed increase of the tariff on rates and refuse is eight percent and electricity is 1.88%.

Municipality spokesperson Sphelelo Ngobese said: “There are various other tariff increases and these are reflected in the Tariff of Charges. A full budget pack containing the Tariff of Charges may be accessed via our website www.kwadukuza.gov.za”

Water and sewerage tariffs will increase by 10% each as well. The iLembe District Municipality said residents can view their tariff charges on the municipality’s website.

Should the increases be final, both municipalities­ said they would come into effect on July 1.

The KwaDukuza Municipality said a general inflationary pressure, as well as key projects that were identified via the municipal IDP, is what informed the decision to increase the tariffs.

“The increase is informed by various aspects. Firstly, a proposed 15% increase on bulk purchases, and secondly, inflationary increases as per the National Treasury regulations affecting input costs,” said iLembe District Municipality manager of communications Zee Nqala.

The KwaDukuza Municipality said comments or representations by residents in connection with the draft budget should be addressed to the Municipal Manager, Mr NJ Mdakane: KwaDukuza Municipality and can be posted to P.O Box 72, KwaDukuza, 4450, telefaxed 032 437 5098 or hand delivered to the municipal offices at 14 Chief Albert Luthuli Street, KwaDukuza.

“In terms of Section 21 (4) of the Municipal Systems Act, No.32 of 2000, any person who cannot write may come during office hours to the Office of the Chief Financial Officer, where assistance in transcribing will be provided,” said Ngobese.

According to the iLembe District, the draft budget was advertised in the media and the advertisement included an email where comments could be submitted.

CONTINUED ON PAGE 3


BLURB - New sewerage tariff calculation method to bring some relief to residents

THE tariff charges for water, sewerage, rates, refuse and electricity is proposed to increase by up to 10% for the 2017/2018 financial year, according to the draft budgets of the iLembe District and KwaDukuza municipalities.

According to the KwaDukuza municipality, the proposed increase of the tariff on rates and refuse is 8% and on electricity, it is 1.88%. 

The municipality’s spokesperson Sphelelo Ngobese said: “There are various other tariff increases and these are reflected in the Tariff of Charges. A full budget pack containing the Tariff of Charges may be accessed via our website www.kwadukuza.gov.za.”

Water and sewerage tariffs will increase by 10% each as well.
The iLembe District Municipality also said residents can view their tariff of charges on the municipality’s website.

Should the increases be final, both municipalities said they would come into effect on July 1.

The KwaDukuza municipality said a general inflationary pressure, as well as key projects that were identified via the Municipal IDP, is what informed the decision to increase the tariffs.

“The increase is informed by various aspects, firstly, a proposed 15% increase on bulk purchases, and secondly,  inflationary increases as per the National Treasury regulations affecting input costs,” said iLembe District Municipality manager of communications Zee Nqala.

The KwaDukuza Municipality said comments or representations by residents in connection with the draft budget should be addressed to the Municipal Manager, Mr NJ Mdakane: KwaDukuza Municipality and can be posted to P.O Box 72, KwaDukuza, 4450, telefaxed to 032 437 5098 or hand delivered to the municipal offices in 14 Chief Albert Luthuli Street, KwaDukuza.

“In terms of Section 21 (4) of the Municipal Systems Act, No.32 of 2000, any person who cannot write may come during office hours to the Office of the Chief Financial Officer, where assistance in transcribing will be provided,” said Ngobese.

According to the iLembe District (IDM), the draft budget was advertised on media platforms and it had included an email where comments could be submitted.

“In addition, IDM works with local municipalities on their public participation meetings. All four local municipalities may have advertised their public meetings in April,” said Nqala.

However, the last day for commenting on IDM’s draft budget was April 30.

Both municipalities said the budget for the 2017/2018 financial year will be tabled for consideration by the council by the end of May.

Commenting on the proposed tariff increase, the DA’s caucus leader Madhun Sing said: “At iLembe significant shift will be that sewer tariff will now be calculated based on valuation of the property instead of consumption based.
“The new method of calculation should bring some relief to households that were saddled with 70% and 50% for sewer respectively over the years. In respect of residential properties including sectional title units sewer tariff will be calculated by 0,0069 cents in the rand on market value while in case of industrial, business and commercial properties the proposed tariff of 0,0232 cents in the rand on market value would apply. At this stage the monthly basic charge would no more apply.”

He said it is important for all affected persons to participate and make an input before the final budget with tariff increases will be adopted at the end of May and become applicable from 1 July 2017.

“While further consultation is taking place with all stakeholders for further refinement, an ideal situation would be to work around inflation-linked increase. The current economic climate and financial constraints would definitely impact negatively servicing debts that are not affordable,” he said

Sing urged residents to check their monthly statements from both municipalities to ensure they reflect the same property valuation.

“If it does not match, correct them immediately. The DA hopes the final tariff charges by KDM and iLembe would be realistic and affordable,” he said.

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