The ANC chief whip, Zolile Mancotywa, tells OFM News that the municipality functions as a business and it must generate revenue and income for it to survive. 

He says the National Energy Regulator of South Africa (Nersa) has recommended a 15,09% electricity hike to Eskom, and based on that they decided to set the metro's electricity's hike at 14,59%, as recommended by Eskom to municipalities. Mancotywa adds that the municipality’s bulk purchases have gone up, which means they are forced to have extra money to buy electricity and water, amongst others.

“Covid-19 has affected everybody, including municipalities. So, if we [price] our tariffs too low then the municipality will collapse. For instance, Joburg metro has also implemented 14,59% like Mangaung,” he adds. 

Mancotywa says Bloem Water have increased their own water tariffs and the move also necessitated them to increase these tariffs. “However, our indigent people are exempted from rates and taxes as well as service charges,” he further adds.

According to the DA council member, Hans Britz, the council approved an electricity tariff increase of 14.59%. Britz said if one buys 500 units of electricity it will, however, cost 23.78% more in July than in June. The ANC members in the council are yet to comment.

“The ANC agreed that residents will now have to cough up more from their pockets and pay [more] for water and electricity," Britz added. The budget was passed despite opposition parties and concerned members of the public raising concerns about the legitimacy and validity of the budget. Britz said they have since requested documents, showing that Nersa has improved the new tariffs, but none was provided.

OFM News