Ratepayers’ associations criticise new tariff adjustments

IN a recent development, ratepayers’ associations have voiced their dissatisfaction with the new tariff adjustments proposed by eThekwini mayor Mxolisi Kaunda.

The mayor’s announcement said the City aimed to drop the proposed tariff hikes for electricity from 14% to 12% and water from 14.9% to 12.9%.

Also read: Ratepayers’ associations want clarity on Integrated Development Programme, Draft Budget

However, these adjustments have been met with criticism from ratepayers’ associations, who argue that even these reduced rates are burdensome for individuals from economically disadvantaged backgrounds who struggle to afford basic utilities.

The associations emphasised that while they appreciate the effort to lower the proposed rates, the suggested rates remain prohibitively high for many residents, particularly those facing financial hardships exacerbated by the ongoing economic challenges.

Earlier, the National Energy Regulator of South Africa (Nersa) had proposed an increase in tariffs to Eskom, prompting municipalities to demand a 14% hike. However, ratepayers’ associations adamantly opposed such steep increases, asserting that municipalities should not seek to generate profits at the expense of struggling residents.

Chairperson of the Bluff Ratepayers’ and Residents’ Association, Norman Gilbert, said, “The municipality cannot exploit us by imposing exorbitant tariff hikes. People simply cannot afford to pay such inflated rates, especially amid the current economic climate.”

The criticism highlights a broader concern about the affordability of essential services for low-income households. Ratepayers’ associations are calling for more equitable tariff structures that take into account the financial constraints faced by vulnerable communities.

Also read: Fury unleashed: Backlash erupts against proposed tariff hikes in eThekwini

While the mayor’s proposal represents a step towards moderation, the ongoing dialogue between the municipality and ratepayers’ associations underscores the need for collaborative efforts to address the challenges of utility affordability and ensure access to basic services for all residents, regardless of their economic circumstances.

The electricity tariff increase is reduced from the proposed 14% to 12.72% which is equivalent to Eskom’s tariff increase.

In his address, Kaunda said, “We have aligned the increase to the Eskom increase. The property rates tariff was reduced from the proposed 7.9% to 6.5%; the water tariff was reduced from the proposed 14.9% to 12.9%. In real terms, we are reducing water tariffs by 2%. This increase will be directed to the maintenance, upgrade, security and building of new water-related infrastructure. The sanitation tariff increase is reduced from the proposed 12.9% to 10.9% while the refuse tariff increase is reduced from the proposed 8% to 7% for domestic and reduced from 9% to 8% for business.”

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