GEORGE NEWS - The electricity crisis and the town's infrastructure are two of George Municipality's main priorities in the allocation of the 2023/2024 draft budget.

Mayor Leon van Wyk said it is extremely important to invest in renewable energy, so that within the next 18 months, George can operate at one stage below the national load-shedding level. 

"It is very difficult to estimate what will happen to the electricity next year, because we do not know what load-shedding will look like then. We want to be prepared."

The budget proposals that were tabled on Thursday 30 March assume an increase of 17% in electricity tariffs. The overall increase in property rates is being proposed at between 12,5% and 15%. Water tariffs are budgeted to increase by 11%, sanitation by 8%, refuse by 7% and all other services by 6%. Acting Municipal Manager Lauren Waring said they are aware of the financial pressure that residents experience. "We are also very aware of the situation; we are consumers too."

Referring to the proposed increase in property rates, Van Wyk said the rebate on valuations will be increased from R150 000 to R230 000 on all residential properties, which will be of particular benefit to lower valued properties. "We are trying to mitigate this, to soften the blow," he said. "This increase is unfortunately needed to balance the books due to the decline in electricity sales."

Another factor is the rise in property values throughout the entire Western Cape. "The migration of South Africans to the WC is a reality," said Van Wyk.

Acting Chief Financial Officer Leon Wallace said the large Eskom tariff increases make it extremely difficult for the municipality to establish its own cost-reflective tariffs. "We are trying to balance everything to a point where we can move forward." Nersa granted an 18,49% tariff increase in bulk purchases of electricity from Eskom. It is yet uncertain which price increase may be passed to consumers.

Hard facts

• George Municipality was forced to invest in purchasing standby generators for various sewer pump stations to mitigate the impact of load-shedding. The diesel costs add up to R250 000 per day from Stage 4 and above.
• During the February 2023 adjustment budget, the impact of load-shedding was shown to result in a R160m shortfall that will impact on the municipality's cash resources through to June 2023.
• In 2023/24 an amount of R135m will be spent on renewable energy, including solar PV plants and battery storage. This also includes R60m to be spent on a 9MW solar installation in 2023/24.

Read Van Wyk's full speech for the draft budget here

From the opposition

ANC Chief Whip Faith Mdaka said the budget lacks equity, fairness and balance funding allocation for all the different areas. "There are no plans and funding to service informal areas and provision of basic services to the poor."

PBI's Jerome Petersen said they are astonished at the new electricity tariffs that were introduced since 2022. 

"Normal households are now treated as businesses when they were moved from a one-part tariff to a three-part tariff. The introduction of the 20amp limit for indigent consumers was also contested. People are being forced to reduce their amperage to 20amps or risk losing their indigent support." 

He also questioned the introduction of smart water meters, and said it is not conducive at the moment. Petersen pointed out "an exorbitant rise in property values, which will lead to higher rates". He said in some cases property valuations increased by 75%. 

ANC's budgetary review
The budget is not reflective of the aspirations of the poor and marginalised community of George. It is a budget of the rich and perpetual white privilege. No funding and allocation of capital projects for townships and poor areas. Development priorities identified in IDP meetings are left unfunded. There is no commitment by the DA council be to community-centric and advocating plight of the poor. The budget lacks equity, fairness and balance funding allocation for all the different areas.

The ANC calls for equitable budgetary allocation and re-prioritisation of the areas of the poor and marginalised. The budget must be peopl- friendly and aimed at uplifting the poor.

There are no plans and funding to service informal areas and provision of basic services to the poor. Provision of basic services to indigent households is not the priority of the DA.

PBI on draft budget
The PBI disagreed with the mayor on the draft budget that he introduced on the following points:

1. Electricity
   The PBI is astonished at the new electricity tariffs that were introduced since 2022. Normal households are now treated as businesses when they were moved from a one-part tariff to a three-part tariff. The introduction of the 20amp limit for indigent consumers was also contested. People are being forced to reduce their amperage to 20amps or risk losing their indigent support. The PBI questioned the survey where a figure of 70% satisfaction with this migration to 20amps is preached by the DA.
   
   
2. Water
   The PBI questioned the introduction of smart water meters as this is not conducive at the moment. The questions raised included:
   a) What will happen to the second and third dwelling when the pre-determined water usage is exhausted
   b) Will the meters be able to handle a sudden jump in consumption due to sediments in the system.
   
   
3. Property rates
   The PBI is aware of an exorbitant rise in property values. This will lead to higher rates. In some cases, property valuations increased by 75%.
   
   
4. Levies for bulk containers
   The PBI questioned the steep rise in tariffs for bulk consumers since 2022. The tariff increase for this service was 54% .
   
   
5. Sewerage
   The PBI also questioned the 19% increase in sewerage tariffs. This was more than the CPIX and above the level of 9% that was being proposed by the municipality.

Acting Municipal Manager Lauren Waring, Mayor Leon van Wyk and Acting CFO Leon Wallace. Photo: Michelle Pienaar

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