As from July 1, the new financial year for the metro, the first 6kl of water which was given free to ratepayers, will fall away for many.
Only registered indigents and households with a proverty value not exceeding R750 000, will still receive 6kl free water.In his budget speech, finance MMC Doctor Xhakaza said over the past years, the City had been providing the first 6kl of water for free to all ratepayers.
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“However, this practice is in contrast to national policy, which forces us to consider our policy stance on the matter.”
He said despite this goodwill act from the City, there was still a sizeable number of poor households that regularly exceeded their monthly allocation of free basic services.
“The result is that council subsidises the consumed minimum services as well as the additional allocations. This practice has a detrimental effect on the finances of the City in two ways, namely:“The City subsidises those households with more than what it receives from the national fiscas; and other deserving households are denied the opportunity to receive free services due to those households that are ‘double dipping’.”
The indigent support policy had been revised by increasing the threshold from R3 200 to R5 090, a move that would accommodate more of destitute members of society.
