KwaDukuza residents face tariff increases of between 5 and 10,5%

KwaDukuza residents face tariff increases of between five and 10.5% come July.

The draft budget for the 2024/25 financial year was tabled in council last week and broke down proposed increases in property rates, refuse and electricity.

Property rates will increase by 5% (with a 25% rebate where applicable), refuse removal by an average of 8% (7% residential, 9% commercial) and electricity by 10.5% subject to approval from the regulator.

The previous year’s increases were 6.5%, 9.5% and 15.1% respectively.

KwaDukuza mayor Lindile Nhaca said the draft budget had implemented increases at the “lowest possible rates” to support residents and businesses.

She said there had been challenges experienced by the KwaDukuza municipality (KDM) which forced the need for increases to maintain economic stability.

“Our municipality is facing inflationary increases and economic pressures due to several factors,” said Nhaca.

“These include the impact of setting cost-related tariffs, the influence of Consumer Price Index inflations on general tariff increases, the global economic status hindering consumers’ ability to settle debt on time, interest rates for borrowings and investment of funds, as well as the lower investment grade status of credit ratings outlook.

“Additionally, the number of individuals qualifying for municipal indigent assistance may increase due to the current economic conditions, necessitating a greater allocation of resources towards supporting the indigent population.”

The main revenue stream for KDM is projected to once again be electricity tariffs at 51.5%, followed by property rates (26.9%) for an overall projected revenue of R2.71-billion.

Bulk purchases for electricity lead the expenditure too at R1.23-billion, but based on precedent over the past few years, that number is likely to be adjusted up to accommodate energy losses.

Total projected expenditure is R2.71-billion, with an additional capital expenditure amount of R286.2-million.

The Democratic Alliance (DA) rejected the budget in its current form, citing issues in the drafting process and too great a burden on ratepayers.

“The 5% rate increase will earn the municipality a further R43-million; we think that money can be found elsewhere and does not need to pass on to residents,” said DA caucus leader, Tammy Colley.

“It is also unfair that additional charges are always being put on businesses, like with the difference in the refuse charges.

“We would like for this to be a collaborative process going forward, where the budget is first presented to portfolio committees rather than full council so that parties have an opportunity to have input before it is public.”

Colley said this was standard procedure in the provincial legislature and neighbouring Ndwedwe Municipality.

ActionSA said they would also not accept the budget as is, raising concerns about the electricity increase among others.

“KDM’s electricity tariff increase of 10.5% is significantly lower than the NERSA increase of 12.72%. This is not realistic,” said ActionSA caucus leader, Nel Sewraj.

“How will KDM compensate for the shortfall? We predict that a further tariff increase may need to be introduced later in the financial year and this is a grave concern.”

Sewraj said these increases should also be read in conjunction with the iLembe District Municipality’s water and sewerage tariff increases of 9.5%.

Residents can comment on the budget by emailing the municipal manager at municipalm@kwadukuza.gov.za, or hand-delivering comments to the municipal offices before April 26.

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