Residents of Nelson Mandela Bay will soon be paying 14,59% more for electricity, after tariff increases were recently approved by council.
According to the metro’s MMC for budget and treasury, Dr Malcolm Figg, the decision to approve an electricity tariff increase and the single digit increases for other services, was necessitated by the crippling economic impact of the coronavirus pandemic and the drought.
He also mentioned that the increase in electricity tariffs is more than three percentage points below the 17,8% cost increase to the metro that was approved by the national energy regulator, Nersa.
He added that he and his team were mindful of the current drought-induced punitive water tariffs and the economic hardship caused by the coronavirus pandemic, when tariff increases were calculated.
The Nelson Mandela Bay Municipality’s R14.9 billion 2021/2022 operating and capital budgets were also recently tabled.
“This has been the most challenging budget as the average revenue collection rate dropped below 85% and the unemployment rate increased across the country due to the negative impact of the COVID-19 pandemic, among others,” Figg said.
“In addition, we had to bolster our water augmentation efforts by increasing funding for the KwaNobuhle pump station from R28 million to R45 million and made an additional R159 million available for the drilling of boreholes,” he added.
“We are already experiencing the debilitating impact of the prevailing drought and must ensure that work continues to lessen the impact on our residents and industry.”
Other increases are: water (6%), sanitation (6%), refuse (6%) and property rates (5%).
Deliberations with National Treasury will continue for the rollover of R183 million Drought Relief Grant that was unspent during the 2019/20 financial year.
The increased tariffs are set to kick in with the start of the new financial year in July 2021.
Meanwhile, Figg joined the water and electricity saving community outreach campaign that recently commenced at Walmer Park Shopping Centre.
Residents were given advice on how to save water and electricity effectively.
According to the current restriction notice eight, all domestic customers must limit their water use to 50 litres per person per day or 15 kilolitres per month for households.
Figg, along with other municipal officials, urged residents to help the metro by reporting water leaks on or outside their properties and to reduce their electricity usage, which will help reduce the demand for loadshedding.
- Residents are encouraged to report service delivery-related queries toll-free from both landline and cellphone numbers on 0800 20 5050. Alternatively, an e-mail can be sent to: waterleaks@mandelametro.gov.za.
Electrical faults can be reported by contacting 041 506 5595.
