BUFFALO City residents could soon pay more for electricity, water and sewerage.
Planned increases for 2014-15 have been slammed by business, rival parties, economists and ratepayers.
Metro spokesman Keith Ngesi would not comment, saying the rates would be discussed at Integrated Development Plan (IDP) roadshows.
The DA said the proposed increases were:
Water – 14.95%; and
Sewerage – 10.56%.The party said the increases were above the average South African 2013 inflation rate of 5.77%.
Ngesi took a swipe at the DA, saying it was ironic that no DA councillors made any contribution during an IDP budget workshop in Port Alfred “and now they raise in the media issues that they were given ample time to raise.”
Ngesi was referring to the DA’s decision to withdraw 19 of its councillors from the Port Alfred workshop.
The party sent only six councillors, saying the workshop was a waste of money and should be at the city hall.
If approved, the electricity hike will be above the earlier rate set by the National Energy Regulator of South Africa (Nersa) for municipalities.
A new figure is expected to be announced in July.
Last year, Nersa approved a 10% tariff hike for Buffalo City Metro (BCM), above the 7% ceiling for municipalities. A metro official said at the time the extra 3% was for municipal infrastructure upgrades.
DA BCM caucus spokesman councillor Lance Weyer yesterday said there were no planned increases for property rates but property valuations had increased on average 11%, and income from property rates would increase by 18%.
He accused the metro of chasing away investors and said its proposed spending on capital had decreased by R64-million while operational expenditure increased by R283-million.
“This is not sustainable if Buffalo City wants to attract and retain business, jobs and investment in our city. Rather than imposing increases, we should be demanding greater efficiency and cost reduction.”
Border-Kei Chamber of Business chief executive officer Les Holbrook said a household in a four-bedroomed house used about R1250 prepaid power a month or R1500 on account.
“Next year after an 8.5% increase they will pay R1 350 and R1620, rounded down – not counting the ridiculous ‘meter reading charge’, which is unconstitutional.”
Holbrook said consumers needed to see value for their rates.
“BCM promised consumers that 10% was requested last year to address the backlogs. We have not seen this happen.”
Investment Solutions economist Chris Hart said residents would struggle to make ends meet with an 8.5% hike.
“The biggest challenge is that people will have real difficulty having money in their pockets with rising petrol prices and job losses.”
COPE councillor Ben Twalingca said the metro was “thumb-sucking” hikes and also accused it of failing to provide solar systems as an alternative. Instead, the metro was increasing operational costs by hiring consultants rather than addressing a lack of skills.
PAC councillor Jerome Mdyolo said the hike would be felt by all, but especially the unemployed.
Nahoon ratepayers’ association chairman Colin Cockcroft said the service charge increases were “absolutely ridiculous”.
Beacon Bay ratepayers’ association chairman Malcolm Symons said BCM needed “competent staff and a council elected by residents”. — msindisif@dispatch.co.za
BCM service charge hike proposal slammed by all
Planned increases for 2014-15 have been slammed by business, rival parties, economists and ratepayers.
Metro spokesman Keith Ngesi would not comment, saying the rates would be discussed at Integrated Development Plan (IDP) roadshows.
The DA said the proposed increases were:
The party said the increases were above the average South African 2013 inflation rate of 5.77%.
Ngesi took a swipe at the DA, saying it was ironic that no DA councillors made any contribution during an IDP budget workshop in Port Alfred “and now they raise in the media issues that they were given ample time to raise.”
Ngesi was referring to the DA’s decision to withdraw 19 of its councillors from the Port Alfred workshop.
The party sent only six councillors, saying the workshop was a waste of money and should be at the city hall.
If approved, the electricity hike will be above the earlier rate set by the National Energy Regulator of South Africa (Nersa) for municipalities.
A new figure is expected to be announced in July.
Last year, Nersa approved a 10% tariff hike for Buffalo City Metro (BCM), above the 7% ceiling for municipalities. A metro official said at the time the extra 3% was for municipal infrastructure upgrades.
DA BCM caucus spokesman councillor Lance Weyer yesterday said there were no planned increases for property rates but property valuations had increased on average 11%, and income from property rates would increase by 18%.
He accused the metro of chasing away investors and said its proposed spending on capital had decreased by R64-million while operational expenditure increased by R283-million.
“This is not sustainable if Buffalo City wants to attract and retain business, jobs and investment in our city. Rather than imposing increases, we should be demanding greater efficiency and cost reduction.”
Border-Kei Chamber of Business chief executive officer Les Holbrook said a household in a four-bedroomed house used about R1250 prepaid power a month or R1500 on account.
“Next year after an 8.5% increase they will pay R1 350 and R1620, rounded down – not counting the ridiculous ‘meter reading charge’, which is unconstitutional.”
Holbrook said consumers needed to see value for their rates.
“BCM promised consumers that 10% was requested last year to address the backlogs. We have not seen this happen.”
Investment Solutions economist Chris Hart said residents would struggle to make ends meet with an 8.5% hike.
“The biggest challenge is that people will have real difficulty having money in their pockets with rising petrol prices and job losses.”
COPE councillor Ben Twalingca said the metro was “thumb-sucking” hikes and also accused it of failing to provide solar systems as an alternative. Instead, the metro was increasing operational costs by hiring consultants rather than addressing a lack of skills.
PAC councillor Jerome Mdyolo said the hike would be felt by all, but especially the unemployed.
Nahoon ratepayers’ association chairman Colin Cockcroft said the service charge increases were “absolutely ridiculous”.
Beacon Bay ratepayers’ association chairman Malcolm Symons said BCM needed “competent staff and a council elected by residents”. — msindisif@dispatch.co.za
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