MBOMBELA – Water tariffs in the local municipality outside the concession area of Sembcorp Silulumanzi are to increase by
38 per cent.
This was the resolution adopted by Mbombela Local Municipality (MLM) during the tabling of the budget speech by the executive mayor Cllr Sibusiso Mathonsi on Thursday. The 2015/16 financial year begins on July 1.
Mathonsi noted that water supply was one of MLM’s top priorities as set out in its Integrated Development Plan (IDP). But the increase in tariffs not being in line with the forecast inflation, was one of the concerns raised by organised stakeholders during the public-participation process.
He noted a number of factors contributing to the increase, such as higher bulk-electricity charges and fuel prices, increased costs related to employees as well as Mbombela’s water-and-sanitation cost-review model and rebates.
“To ensure that the huge increase of 38 per cent on water tariffs does not impact negatively on the poor-, low- and medium-income customers, the increase on monthly water consumption of between six to 12 kilolitres has been capped to an average increase of 10 per cent in 2015/16.”
But the increase is expected to continue over the medium term with water tariffs expected to rise by another 38 per cent in 2016/17 and again in 2017/18.
Tariffs for water users in Sembcorp’s concession area will increase by 10,31 per cent, similar to its increase in 2014/15. In Mbombela the average increase in electricity, water, and sewage and refuse removal will be 9,2 per cent in 2015/16.
It was noted that electricity tariffs may need to increase more if the National Energy Regulator approves the 12,4 per cent increase Eskom had requested on June 29.
According to MLM’s 12-point plan to improve cash-flow performance, water losses stood at 40,5 per cent amounting to R54 million while losses due to electricity theft amounted to 21 per cent or a possible R42 million.
It also estimated that MLM had saved an average of R1,2 million per month on possible interest charges since settling its Eskom accounts timeously since March.
- Read more on Mbombela’s water woes here.
