LOAD shedding won’t be the only thing on the rise for Ekurhuleni residents as electricity tariffs will go up by 12.2 per cent in the new financial year, almost double compared to last year’s average increase of between 6.3 per cent to 7.6 per cent.
Water tariffs will also be increased by 14 per cent as of July 1 this year, as compared to 8.1 per cent last year.
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The announcement was made on Thursday, last week, during the 2015 Ekurhuleni budget speech, delivered by finance MMC Moses Makwakwa.
The budget for the 2015/2016 financial year totals R29.5-billion, of which R14.6-b is being invested into the MTREF (or capital budget) and R2.7-b will be spent on repairs and maintenance.
According to the MMC, the increase in the electricity tariff was per Eskom and in line with the National Electricity Regulator of South Africa (NERSA).
“Unfortunately, tariffs such as electricity and water are completely out of our control and determined at national level by Eskom and Rand Water,” Makwakwa said.
Makwakwa gave assurance these new tariffs were determined only after consideration of the socio-economic condition of the metro’s residents, including the low levels of disposable income and affordability.
“Ekurhuleni remains the most affordable metro in the country to live in, with an average household bill for services being R1 403,” he said.
Makwakwa compared the metro to other municipalities, including Jo’burg, Tshwane and Cape Town, where the average household bill for services is R1 641.
Other tariff increases for the 2015/2016 financial year include: 7.5 per cent for assessment rates, 9.5 per cent for sanitation and an eight per cent increase for refuse removal.
Tariffs for the following services would not rise in the new financial year: cemeteries, libraries, recreational halls, as well as the hiring and use of sports and other recreational facilities.
R2.5-billion will be spent towards social support packages as a relief to the metro’s over 100 000 poor households.
The following free services will be provided:
• 100 per cent rebates on assessment rates
• Free nine kilolitres of water
• Free nine kilolitres of sanitation
• Free refuse removal
• 100 kilolitres of free basic electricity
The following free basic services will be provided to all Ekurhuleni’s residents:
• The first R150 000 on property value is exempted from assessment rates
• Free six kilolitres of water and sanitation respectively
• 100 kilowatts of free basic electricity to low end users
• Additional pensioner’s rebate on property assessments
• Churches and NGO’s will be exempt from assessment rates
Transport has been allocated R825-million, including repairs and maintenance, R568-m will go towards the IRPTN, R93-m for the construction of four new taxi ranks in Palm Ridge, Vosloorus, Bluegum and Phutaditshaba, and R40-m will be spent on new metro buses.
Of the R1.2-m allocated for roads and storm water, R675-m will, amongst other things, cover the construction of roads and storm water and over half a billion will be spent on rehabilitation and resurfacing.
Road safety will also be prioritised when the city increases pedestrian walkways and bridges across the city, including townships such as Tembisa and commercial and industrial areas.
R1.1-b has been budgeted for upgrading water and sewer networks and maintaining water reticulation infrastructure.
Forty seven per cent will be new infrastructure and the remaining amount for maintenance work. R150-million will be spent on a new water loss eradication programme.
R1.4-b has been allocated towards energy, including street and high mast lighting, upgrading of substations, network enhancements and electrification and alternative energy sources, especially in informal settlements.
A total of R579-m has been allocated to human settlement development and urban renewal, and Gauteng MEC for Finance Barbara Creecy announced during her budget speech that a further R983-m has been set aside for human settlements in the Eastern Corridor.
R128-million will be spent towards the rehabilitation of existing emergency infrastructure and construction of new facilities, including Germiston, Kwa-Thema and Thokozana fire stations.
Health and social development will also be prioritised with R104-m being spent to ensure the city’s residents receive quality health care.
In an effort to encourage the importance of health and fitness amongst the people of Ekurhuleni, part of the R193-m allocated for sports, recreation, arts and culture will go towards the installation of 60 eco-gyms in recreational parks.
“In an effort to strengthen Ekurhuleni’s economy and to achieve the socio-economic goals of creating employment, reducing poverty and inequality, we are unleashing a radical Community Economic Transformation Package of R2.9-b called ‘Mintirho Ya Vulavula’.”
This project seeks to assist pre-qualified businesses owned by the youth, women and people living with disabilities.
While the MMC acknowledged the metro’s revenue collection rate was below target, Makwakwa ensured that Ekurhuleni remained committed to achieving the 93 per cent collection target.
Makwakwa also mentioned that there would be consequences for the underspending of the city’s Capex budget.
“I must also state that the inconsistent and perpetual underspending of the capital budget is unbearable. The below 90 per cent is working against our political mandate to accelerate service delivery and development in the area. In this regard, we will be closely watching the organisational performance report which will determine the the kind of action to be taken,” Makwakwa concluded.
