The
informed decision to approve an electricity tariff increase, more than three
percentage points below that approved by the national energy regulator, Nersa,
and the single digit increases for other services, was necessitated by the
crippling economic impact of the coronavirus pandemic and the drought.
Electricity
increased by 14,59%, lower than the 17,8% cost increase to the Metro by Nersa.
Nelson
Mandela Bay Municipality Member of the Mayoral Committee for Budget and
Treasury, Dr. Malcolm Figg, said 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 approved yesterday.
“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 amongst others.
“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.
“We
are already experiencing the debilitating impact of the prevailing drought and
must ensure that work continue to lessen the impact on our residents and
industry,” Figg said.
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.
