Durban - The Msunduzi Municipality says it has proposed cost-reflective tariff increases for the 2023/ 2024 financial year for electricity and water.
The proposed increases are out for public comment.
The municipality said they had proposed a tariff increase of 3% for electricity and water.
However, these increases would be on top of the 18.65% tariff increase that the National Energy Regulator of South Africa (Nersa) approved for Eskom and the 13% proposed tariff increase for Umgeni Water.
This would put the proposed increases at 21.65% for electricity and 16% for water.
Msunduzi municipal manager Lulamile Mapholoba said the proposed tariff increases would be presented to residents for public comment.
“The proposed cost reflective tariff is for the 2023/24 financial year. We are following all due processes. The fact remains that we can’t keep providing services to the communities at a loss. We need to be able to recover our losses so that we can keep providing services.”
Mapholoba added that all submissions are welcome.
“The tariffs are still at a proposal stage and we await public comment. Bear in mind that we can’t do anything about the approved tariff increase by Nersa and Umgeni Water’s proposed tariff increase. However, we have met with Nersa, Umgeni Water and the Treasury about our proposed increase.”
African Christian Democratic Party councillor Rienus Niemand said they will not support the proposed increases. “The process allows for public comment and we have no doubt the public will also reject the proposed tariff increases. The fact is this is an astronomical increase.”
Neimand added that the municipality was putting the ratepayer under immense pressure.
“This proposed tariff increase is coming as a result of the municipality’s failure. The municipality has installed at least 36 000 prepaid electricity meters and at least 22 000 meters have been tampered with. How much money is being lost because of non-payment for prepaid electricity? The municipality is now in turn trying to recover funds from the ratepayers. We as the ACDP will not stand for this.”
Msunduzi Association of Residents, Ratepayers and Civics chairperson Anthony Waldhausen said the association was unable to comment at this stage.
“The public hearings that were supposed to take place on February 7 were postponed and we are waiting for the new date. We are set to meet with the municipal finance department.”