Grahamstonians can expect to reach deeper into their pockets for electricity. Members of the Makana Council voted for a proposed electricity tariff hike of 7.39% on Wednesday 12 March.
Grahamstonians can expect to reach deeper into their pockets for electricity. Members of the Makana Council voted for a proposed electricity tariff hike of 7.39% on Wednesday 12 March.
The final voting tally was four councillors against, 16 for and one abstention.
All four votes against came from DA Councillors.
The item had previously been discussed during a portfolio committee meeting for Engineering and Technical Services on 21 February.
It was discovered during the meeting that the Council have been going against the instructions of the National Energy Regulator for South Africa (Nersa) who have the ultimate say in electricity tariffs.
Electrical Engineer, Mzomhle Radu, warned that while Nersa were unaware that Makana is not meeting its benchmark, “it is almost inevitable that they will discover these contraventions”.
It was proposed that the tariffs increase by 7.39%, the maximum increase recommended by Nersa.
Makana’s electricity department is hoping to make “a massive profit of 12.1% turnover”.
DA caucus leader and Councillor, Les Reynolds spoke against the increase saying it should be between 6.5%-7% to justify asking the people to pay more.
He said that while the municipality could benefit from the money, it should concentrate on getting back the R244 million owed for rates by residents and institutions before it increases anymore costs.
“You will be penalising the people who do pay their rates and increasing the amount of money owed to the municipality,” said Reynolds.
Other members of the council who seconded his proposal asked how they could ask the poor to pay more for electricity when it is already too expensive.
Council Speaker, Rachel Madinda-Isaac, said the municipality already provides for the very poor as indigents in the community and therefore the hike would not affect the poorer members of Grahamstown.
Emmanuel Myalato, City Engineer, said that the municipality needs the money to fix Grahamstown's failing infrastructure.
“We need to attend to the substations urgently or we will have a blackout. We need sufficient funds,” said Myalato.
