TZANEEN – The Greater Tzaneen Municipality (GTM) has clarified that it is not making a profit from water services, despite planned tariff increases.

Chief financial officer Choene Maeta made the remarks during a media networking session held recently at Hotel@Tzaneen, in response to questions about proposed increases in water and electricity tariffs.

‘We are operating at a loss’

Maeta explained that while the percentage increases may appear high – electricity at 9.10%, water at 101.52%, and Haenertsburg water at 62.30% – the actual tariffs remain low.

He said the municipality currently charges R1.71 for 6 kilolitres of water, a rate that makes it impossible to properly maintain infrastructure.

“There is no local municipality that charges less than R7 per 6 kilolitres,” Maeta said. “What we are charging is not even cost-reflective. We are operating at a loss, not making a profit.”

He added that tariff increases are necessary to begin generating revenue that can be reinvested into upgrading and maintaining ageing infrastructure.

Municipality remains financially stable

Meanwhile, during the State of the Municipal Address, Mayor Odas Ngobeni said the GTM remains financially stable.

He reported an average revenue collection rate of 84% during the second and third quarters of the 2025/26 financial year, which improved to 91% in April and 90% in May 2026.

Strong collection rates in Tzaneen town

Ngobeni said the figures reflect strong compliance by residents, businesses, and institutions, allowing the municipality to continue investing in infrastructure and service delivery.

Tzaneen town recorded a particularly strong performance, with collection rates of 95% in April and 99% in May.

Rural areas such as Magoebaskloof, Haenertsburg and Letsitele also showed solid collection levels.

However, the mayor noted that revenue collection in Nkowankowa and Lenyenye remains a concern despite gradual improvement and will require targeted interventions and stronger community engagement.