LETTER TO THE EDITOR: Resident questions authenticity of recent electrical charges
The availability of electricity and water plays a prominent part to establish the rateable value of a property. Rates, as we know, are paid monthly.
A letter to the editor
A municipality derives its biggest income from rates paid by owners or occupiers of properties situated in the borough area. The rates payable on the property is determined by taking into account the following factors: the situation and zoning, the availability of water, electricity and sewage, the size of the property and access to roads etc.
These are a few aspects a valuator considers. The other factors will not assist the conclusion to which the writer comes.
A property with no electricity or water will obviously be of lesser value, which in turn will mean lower rates payable by the owner or occupier.
The availability of electricity and water plays a prominent part to establish the rateable value of a property. Rates, as we know, are paid monthly.
The local municipality purchases electricity from Eskom and it is sold to the consumer at a profit.
Electricity accounts have to be paid promptly or services are terminated.
To have the service restored, certain penalties profitable to the municipality have to be paid before any continuation of service is undertaken.
The situation with the supply of water to the consumer is very much the same. Water is supplied at a profit to the consumer.
Every month when the assessment rates on a property are paid the availability of water, electricity is embodied in the account as pointed above.
Fairly recently Newcastle municipality was involved in litigation with Eskom in the High Court in Pietermaritzburg because more than R400 000 000 was due to Eskom for electricity supplied (my figures might not be exact).
The logical conclusion is therefore monies paid for a considerable period of time to the Newcastle Municipality were never paid over to Eskom.
To my knowledge, no reason was supplied to the ratepayer and consumer for the blatant omission. Was it due to negligence or theft?
The municipality arrived at a settlement with Eskom and is to pay an extra amount every month to settle the debt due to Eskom.
I stand to be corrected, but it was not long after this settlement that two new items appeared on the monthly municipal account, namely a charge for electricity availability and one for availability of water.
These charges are in addition to the charges for electricity and water consumed. How many times must the Newcastle consumer pay for the electricity and water?
An account dated 20/12/2022 sent to the writer indicates the charges as follows:
- Electricity consumption: R1117.75
- Electricity availability: R928.18
- Water consumption: R133.41
- Water availability: R49.89
Is the municipality now trying to recover tariffs for the second time to pay the Eskom settlement? Has it been explained why a non-satisfactory audit was once again obtained by the Treasury Department? Has it been explained why government has approved an SOE investigation into the financial affairs of the Newcastle Municipality?
What are the councillors doing to protect the ratepayer and consumer against being bludgeoned?
A figure of over R23 million was mentioned to me as to be the amount of a shortfall in the books of the municipality; what a disgrace! Are there any prosecutions to follow?
On what basis do they charge for availability of electricity when there is no electricity available during load shedding and certain consumers suffer damages as a result thereof?
Read the Newcastle Municipality’s response in this week’s edition of the Newcastle Advertiser!
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