Vehicles drive past the Pietermaritzburg City Hall building with a metal silhouette sculpture on the island in the foreground Ratepayers and the business sector have objected to the proposed steep tariff hikes being proposed by the Msunduzi Municipality in Pietermaritzburg. File Picture: Independent Newspapers Archives
Residents of Msunduzi Municipality will have to dig deep to pay for essential services if the proposed tariff increases put forward by the municipality for the next financial year are approved.
The proposed tariff for the 2024-2025 financial year shows steep tariff hikes, especially for electricity.
Opposition parties have expressed outrage, pointing out that some of these tariffs are steep, unaffordable, and unjustified. The matter is expected to be discussed at the full council meeting today.
However, the municipality has insisted that its tariffs must be cost-reflective, meaning they must reflect the true cost of providing that service.
The draft proposal indicates that the city is proposing a 36% tariff hike for electricity, which could be more than double the current charge.
Justifying the increase, the document states that part of the reason is that Eskom has proposed to increase its tariff by 36%.
“This means we are required to raise our tariffs by 36% and above. The municipality will need to cater for weighted Eskom tariff increases plus the under-recovery factor,” the document said.
Under-recovery is not only due to low tariffs but also unmetered supply, tampering, and under-billing.
“For full recovery, the cost reflectiveness needs to be matched by applying the percentage increase set by the model; however, in some categories, the increase is more than double the existing tariffs, which might cause affordability challenges for customers,” the document states.
For water, the city proposed a tariff increase of 15.5%, up from the current 12%, and needs to charge 15% to break even. For sanitation, the proposed charge is 15%, up from the current 12%, while the city needs a 23% increase to break even on this service. The proposed increase for rates is 2%, and the increase for waste removal is 7%.
DA councillor Bongumusa Nhlabathi said they strongly oppose the proposed 2025/26 draft tariffs.
“This will put more burden on the few residents that end up subsidising those who steal the services. To avoid these hikes, the ANC-led coalition should enforce by-laws against those who are not paying,” he said.
He added that the city could act to protect its residents from high tariffs, including disconnecting areas that are not paying, sorting the billing system, acting on those who are tampering, installing smart prepaid meters to eliminate tampering for electricity, and sorting out the indigent registration.
Rienues Niemand of the ACDP said it is totally unacceptable and and unaffordable for the paying public to be burdened with such astronomical increases. It is a fact that on prepaid electricity alone, more than 60% of the meters have been tampered with.
Anthony Walhausen, co-founder and chairperson of the Msunduzi Association of Residents, Ratepayers and Civics (MARRC), said they object to these ridiculous tariff increases, which happen every year without fail.
Melanie Veness, Chief Executive Officer of the Pietermaritzburg and Midlands Chamber of Business, said the 2025/26 tariffs proposed by Msunduzi Municipality are completely ludicrous, considering that CPI is currently at 3%.
Municipal spokesperson Ntobeko Mkhize said, “The draft tariffs are going to Council for approval on Wednesday; thereafter, they will go for public participation where all stakeholders will be invited to provide their views. Written comments will also be accepted up until 28th February 2025, as stated in the invite issued by the municipality.”