Councillor stands against tariff increases

Amid job uncertainties and economic instability, residents can expect another financial hurdle, in the form of a proposed tariffs increase, thrown at them.  The budget draft for the financial year 2020/ 21 is currently open for public comment and residents are encouraged to have their say.

Residents have until Friday, 8 May, to comment on the suggested utilities draft. The proposal, which currently stands at 6.9 per cent for electricity and rates with water, sewage and refuse at 9.9 per cent to services rendered, is available online.

A release from the municipality read, “The cost pressures of the water and electricity bulk purchases tariffs continue to grow faster than the inflation rate. Given that these tariff increases are determined by the external bodies, the impacts they have on the municipality’s tariff are largely outside the control of the city.

ALSO READ: City opposes hefty Eskom tariff hike

“Furthermore, the adverse impacts of the current economic climate coupled with unfavourable external pressures on services, make tariff increases higher than the CPI levels inevitable.
“This is resulting in consumers not being able to afford the high tariff increases and resorting to consuming less and also increased theft.
“However, it should be noted that the overall increases in the basket of goods and services is substantially lower than last year’s increases due mainly to a 50 per cent reduction in electricity tariff increase and a 33 per cent decrease in water tariffs. In addition, all the other sundry tariff increases have been kept to a level of approximately five per cent increases.”

Ward 97 councillor, André Beetge who stands firmly against the initiative said,

“Although the municipality needs the funding to be able to function, due to the cash on hand being reduced as well as the Covid-19 lockdown adding to this. We need to remember that there is a drop in the economy and those who are expected to pay these tariffs are barely surviving themselves. The increases should be brought down to the bare minimum to keep the municipality afloat without them gaining a profit. We suggest that salaries of officials be reduced and to find other ways to keep the municipality running. Residents should also be aware of wastage in their homes, such as water loss. We in no way support this initiative and we are not in favour of the tariff increase. Residents are urged to put in their objections before Friday to ensure that the tariff increase are not implemented.”

Business owners wanting to be represented can fill in a short survey by visiting https://bit.ly/EconomicRecoverySurvey. To access the full draft document, visit https://bit.ly/3bXS4cy or to read more about the proposals penned by DA leader in eThekwini, Nicole Graham, visit https://bit.ly/2WfeU8S.
Comments or objections to the draft budget can be e-mailed to info@durban.gov.za or constance.mwelase@durban.gov.za by Friday, 8 May.

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