GEORGE NEWS - It's that time of the year again: the annual increase in municipal tariffs for the next financial year is on our doorstep and will be implemented on 1 July.
The following tariff increases were tabled and adopted in Council on Monday 29 May: electricity (14,75%); property rates (12,5%); water (11%); sanitation (8%); refuse (7%) and other general services (6%).
Not straightforward
The municipality's chief financial officer, Riaan du Plessis, said the tariff increases are not as simple as in previous years. "National Treasury and Section 78 of the Municipal Systems Act have legislated that all municipalities must set cost-reflective tariffs," said Du Plessis.
"This means that, for example, although George's refuse and sewerage tariffs will increase this year by standard percentages, our water and electrical tariff increases are percentage guidelines, as the actual increase for each individual household will be determined by your individual consumption levels of water and electricity. Equally, the tariff increase for property rates will be subject to the value of your individual property."
More on electricity
Mayor Leon van Wyk said although municipalities are permitted to increase their electricity tariffs to their customers by 15,1%, the Budget Steering Committee requested that this increase be limited to 14,75% with the difference being absorbed internally.
Nersa granted Eskom an increase in their tariffs to municipalities for the bulk purchase of electricity of 18,49%.
"George commenced last year with the Nersa-approved project of introducing fixed charges for electricity to enable municipalities to protect their distribution grids," said Van Wyk.
"In addition to the fixed charge, a capacity charge per ampere is also being levied. The objective of the capacity charge is to moderate the normal maximum demand (NMD) of the amount of electricity that Eskom has to supply to George. If we are able to manage the NMD below the current 85MVA, it will assist in negotiations to avoid the implementation of Stage 1 of load shedding.
"In the tariff structuring, indigent households can choose to remain on 20 amps, or they can also choose to be on 40 amps and pay the capacity charge of R5,16 per amp but no fixed charge; or 40 amps or higher. They will not lose their indigent status on the higher capacity ratings."
Van Wyk said the municipality received comments from the public covering aspects of the increases being levied.
"These have all been dealt with in responses with the necessary explanations. In my speech today, I have covered the broader context of the difficult decisions that Council is making to balance the budget while maintaining the level of services to maintain George's status as a well-run city, even though we take cognizance of the impact on our citizens in these tough economic circumstances."
The tariff increase for the following book year, starting on 1 July, is listed under the column Budget Year 2023/24.
‘We bring you the latest Garden Route, Hessequa, Karoo news’
