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Tariff Increase WhatsApp Causes Residents to Panic
​It has come to the attention of the Municipality that a Whatsapp message circulating since Sunday, 20 May has caused panic among residents regarding the proposed tariff increases for 2018/19.
 
It must be noted that in terms of setting the tariffs the Municipality takes great measures to ensure that tariffs are cost reflective, affordable and sustainable for ratepayers.
 
However the adverse impact of the current economic climate, coupled with unfavourable external financial pressures on services, increases in bulk charges above consumer price index have put significant strain and pressure on tariff increases. In setting the tariff the Municipality has taken cognisance of the proposed tariff increases from both NERSA and uMgeni Water Board of 7.32 percent and 13.7percent respectively.
 
It should also be noted that the salary increase impacts on tariffs. The proposed 7 percent increase has been rejected by one of the major labour unions.
 
A benchmarking exercise by National Treasury based on a basket of goods reflect that of the main Metros, eThekwini has the lowest monthly bill for middle income households.  EThekwini is 4 percent lower than Johannesburg, 7 percent lower than Tshwane and 338 percent lower than Cape Town. The results also show that despite eThekwini’s tariff increases being over CPI, for affordable housing the monthly bill is once again the lowest, with 11.6 percent lower than Johannesburg, 82.7 percent lower than Tshwane and 335.3 percent lower than Cape Town.
 
There was no comparison of high income households, but similar trends are expected.
 
The proposed tariffs as per the draft budget tabled are, 6.84 percent for electricity.  
The water tariff increase is proposed at 15 percent for domestic and 15.5 percent for business.
The uMgeni tariff has been finalised at 13.7 percent however the City will continue to engage them in order to influence a reduction.
Refuse removal tariff increase is proposed at 9.9 percent.
Sanitation at 9.9 percent.
Rates (average) of 6.9 percent.
 
The Municipality called on residents to submit their comments on the Draft Budget/IDP 2018/19 that closing by end of business day of  23 May 2018. The Draft Budget/IDP 2018/19 financial year was tabled at full Council on 28th of March. Public consultation regionally and with various sectors thereafter took place from the 19th of April 2018.
 
Eight regional consultations together with presentations to business, academia, religious and civic organisations were held.
 
The draft is expected to be tabled for adoption at a sitting of full council on the 31st of May as legislated.
Comments on the have been received via email, written submissions and through the public engagements. The budget is available on the municipal website via the link below:
 
 
Comments can be emailed to kay.naidoo@durban.gov.za
WEATHER

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