Come 1 July, residents of the Overstrand Municipality (OM) will see a 15,1% increase in electricity tariffs – this comes after the 2023-’24 budget was approved by council on Wednesday.
OM Executive Mayor Dr Annelie Rabie warned it is going to be a tough year. She cautioned about the cost of supply of electricity that needs to be implemented this time next year. “Our electricity rates are not going to follow the known format and it’s not going to be nice.”
The National Energy Regulator of South Africa (Nersa) approved a tariff increase of more than 18% to Eskom, which means an additional 3,7% has to be accepted and absorbed by this council.
In her speech Rabie said the economic impact of the pandemic of 2020, which resulted in many businesses closing down, job losses and hardship especially for the self-employed, was still being felt three years later and the current budget is in fact just a continuation of the previous years, marked by the challenge of combatting said economic impact.
Some of the bigger concerns include the impact of load shedding on municipal services and economic growth (the budget surplus for electricity services that deteriorated from 5,36% to 4,89% due to the load shedding impact), the cost of electricity one year from now in line with the cost of supply, a fleet of deteriorating vehicles and machinery and infrastructure equipment that is not getting cheaper.
Addressing the topic of the property valuation roll, the Mayor said approximately 1 800 objections were lodged. Very few of the objections proved the valuations incorrect, most were due to the fact that residents mentioned they could not afford the higher rates to follow.
She went on to explain that a new, discounted property rate in the rand is now applicable for the calculation and levying of property rates.
To explain the impact the following example: A property that is currently R880 000 and the valuation increases to R1,5 million (value goes up with 70%) if the nett increase in the total municipal account will be 12%.
A property that is currently R1 million and the valuation increases to R2,5 million (value goes up with 100%) if the nett increase in the total municipal account will be 14%.
The Pensioners Rebate will therefore be as follows: 100% to approved applicants who are older than 60, whose gross monthly household income may not exceed the amount of two times of state funded social pensions per month; 70% to approved applicants who are older than 60, whose gross monthly household income may not exceed the amount of four times of state funded social pensions per month and 40% to approved applicants who are older than 60, whose gross monthly household income more than four times but less than eight times of state funded pension per month.Tariff increases:. Sewer 6,8% . Refuse 6,8%. Water 6,5% . The average increase of this basket of services excluding electricity amounts and property rates, relate to an average increase between 6,5% and 7,5%. In instances where water consumption exceeds 18 kl, the increase might be higher.. Sundry tariffs – ranging from 6% to variable deductions or to a cost recovery adjustment. The extended tariffs list is available.. Implemented as part of OM’s pro-poor approach in the current budget, to continue for indigent households, the benefit of 10 kl of free water and in respect of sewerage the 4,2 kl free sewerage units of 7 kl.For more detail regarding the Operational and Capital Budgets, consult the 2023-’24 Final Budget book available on the municipal website.
