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Tariff structure illegal
GRATIS
Residents ‘must declare dispute before 12 September’ Marti Will
IF it is not in the budget and approved by council, it is illegal. Period. So says the DA in response to the illegal electricity tariff structure and the implementation thereof by the Matjhabeng Municipality on the July municipal accounts. “The advertisement by the Matjhabeng Municipality in the Vista of 28 August is nothing more than a blatant attempt (at the expense of the ratepayers) to mislead residents on the legality of the electricity tariffs and to try and justify the illegal application thereof,” says André Styger, DA councillor and member of the Matjhabeng Finance Committee. “All residents of Matjhabeng must immediately, before 12 September, declare a dispute with council according to Article 102 of the Constitution of South Africa on the grounds that the tariff being charged is not the tariff approved in the budget,” says Dr Jan Marais of the DA. During the March meeting (which the advert refers to), the draft budget was approved. A recommendation was made that due to the Eskom tariff structure, a step-up tariff must be implemented in future. “The understanding was that the effect and feasibility of the possible future use of such a step-up tariff would be investigated and submitted to council,” says Styger. “The DA opposed the budget. The DA proved that if the unwarranted wastage of council funds and resources were brought under control no increase of any tariffs would be necessary. As a matter of fact, a decrease in tariffs would have been possible,” says Styger. During the meeting the ANC outvoted the DA. Only a normal step-up tariff for water was approved. “As far as electricity is concerned only an across the board electricity tariff increase of 7,39% based on our existing tariff structure was approved. No electrical step-up tariff
was discussed, proposed or approved,” says Styger. “The implementation of any other increase or structure is therefore illegal irrespective of whether the National Energy Regulator of South Africa’s (Nersa) guidelines make provision for it or not, and irrespective of whether it was advertised or not. The City Council of Matjhabeng is the only structure that can set tariffs (within Nersa’s guidelines and with its approval). “This function cannot be delegated to any political office bearer or official, according to Section 59 of the Municipal Systems Act. “Should the municipality continue with this structure they are opening themselves up to a class action by residents against council. Ironically, it will be the ratepayers’ money that will be used by council to oppose the very same ratepayers who are being extorted,” says Styger. “And now, ironically, the DA must defend the same budget it opposed in order to stop the illegal tariffs being used. Styger says this raises a serious question. Why is the ruling party quiet and not defending the tariffs it approved? The only reasonable answer is that Matjhabeng is probably going to become the first major municipality whose electricity supply will be cut by Eskom, and this will most likely cause the municipality to be placed under administration,” says Styger. On 31 July the Free State High Court granted an order which allows Eskom to cut the electricity supply to Matjhabeng should it fail to pay the R420 million arrears plus interest, as per an agreement discussed in a closed council sitting on Tuesday. “It is therefore understandable that instead of requesting council to approve further increases and then having to engage the ratepayers in a public participation process, it was easier try to manipulate and sidetrack the council decision. They are squeezing the last life blood from the proverbial goose that lays the golden eggs.”
KGOJANE MATUTLE (communications, marketing and branding officer at the Matjhabeng Municipality).
SEBENZILE NGANGELIZWE mayor of Matjhabeng).
ANDRÉ STYGER (DA).
DR JAN MARAIS (DA).
MONEY spent on the advertisement (see lead article) would have been better used if the municipality explained to residents: ) How the step-up tariff will not exceed the approved 7,39% increase. ) Why Eskom was only paid for four months during the past year and how the almost
R300 million that was billed to residents and never paid over to Eskom was used. ) Why R960 000 was illegally spent on the Free State premier’s inauguration and not used to avoid the imminent suspension of electricity supply from Eskom. ) What decision was taken during the
almost clandestine closed council meeting of Tuesday, 26 August, the contents of the payment agreement reached with Eskom and what measures (other than using illegal tariffs) council are going to put in place to fulfil its obligations towards Eskom. “The ANC-led council must have the
political willpower to address the 56% of residents who are not paying their municipal accounts and use income derived from electricity billing to actually pay Eskom. They must stop the proverbial practice of robbing Peter to pay Paul,” says André Styger, DA councillor.
(executive
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