Latest news with #MTREF
The Citizen
12-07-2025
- Business
- The Citizen
AbaQulusi residents outraged by sharp electricity tariff hikes
AbaQulusi residents have expressed their frustration and anger on Facebook since bearing the brunt of the increased electricity tariffs, which came into effect on July 1. Especially consumers who use prepaid meters have seen a sharp price hike, leaving them feeling concerned about their financial state. The increases form part of the municipality's 2025/26 budget implementation, but residents say there was little to no meaningful public engagement during the IDP roadshows, when the tariff hikes were proposed. 'We always buy R800 and used to get 299 units. Today, however, we only got 186 units for R800. It's ridiculous!' exclaimed one affected resident on the Vryheid Herald's Facebook page. These tariff hikes come after the National Energy Regulator of South Africa (NERSA) approved Eskom's price increases, which municipalities pass on to consumers. However, residents argue that AbaQulusi's service delivery failures – frequent outages, poor communication and ageing infrastructure – make the increases unacceptable. Another resident said, 'We would understand if they were charging us these exorbitant amounts for stable electricity supply, but they are charging us for electricity that is unstable.' In the Adopted Annual Budget, the municipality refers to the major challenge they are facing, namely vandalism, which has a negative impact on electrical infrastructure. 'This not only affects service delivery, as services become unavailable immediately after infrastructure has been vandalised, but it's also expensive to repair and replace.' Even though electricity is more expensive (according to the adopted municipal budget, which is available on their website), the real cost is much higher than consumers are being charged now. The 2025/26 Adopted Annual Budget and Medium-Term Revenue & Expenditure Framework (MTREF) reveal that the municipality is under financial pressure to keep the Electricity Department running. Despite a price hike of 11.32% in bulk electricity from Eskom, AbaQulusi is still not charging enough to fully cover costs. A 'Cost of Supply' study shows that to run the electricity section efficiently and keep up with Eskom's electricity increases, tariffs should ideally increase by 51%. But the municipality says that such an increase would be unaffordable for residents. Instead, the municipality has implemented the following tariff increases: • A 25% rise for residential users (prepaid and conventional) • A 15% rise for other consumers like businesses For the past three years, electricity sales have not brought in enough money to pay Eskom. As a result, other municipal funds have been used to subsidise the Electricity Department. Making matters more difficult is the fact that municipalities owing Eskom money, including AbaQulusi, are now required to include repayment plans in their annual budgets. NERSA has confirmed that it will only approve tariff applications based on 'Cost of Supply' studies that were submitted by municipalities. This means that tariffs are probably going to increase over the next few years. The municipality also implemented a 'High Season' tariff in the winter months of June, July and August, since Eskom charges municipalities more during this period. The current challenge is also that domestic consumers are being undercharged for electricity, while businesses and other consumers are being overcharged. According to the adopted budget, for consumers who use a prepaid meter, electricity is now charged using two pricing blocks instead of the previous four. This means that if you buy up to 350kWh in a month, you'll pay a lower rate (Block 1). If you buy more than 350 kWh in total during that month, the extra units will cost more per unit (Block 2). The system will keep track of how many units you have bought in that same month. This means that even if you buy electricity in smaller amounts, the total for the month is the same. Once you go over 350 kWh, consumers will pay the higher rate. Domestic prepaid electricity users (excluding the indigent) will have to pay a fixed monthly service fee, as well as higher rates during winter months. According to the municipality's adopted 2025/26 budget, this applies to households with single-phase prepaid connections between 30 and 60 amps, which are common in most homes. All prepaid consumers will pay a monthly service fee of R25. Domestic consumers (excluding the indigent) will pay R2.55 per kwh for the first 350 kWh purchased and thereafter R2.72 per kWh. During the Eskom high season (June to August), electricity will cost more: • R3.74 per unit for the first 350 kWh you use in a month. • R4.16 per unit for any units above 350 kWh. If you use a conventional (monthly billed) meter: Conventional consumers will pay a monthly service charge of R224 (excluding three phase consumers, who will pay a service charge of R1300 a month). • For the first 350 kWh used in the month, you'll pay R2.72 per unit. • After that, every extra unit costs R3.79. In Eskom's high season (June to August): • The first 350 kWh will be R3.35 per unit; • Over 350 kWh will be R4.12 per unit. The Vryheid Herald has requested a proper breakdown of the new tariffs, since consumers are complaining and confused. Unfortunately, this information from the municipality had not been received at the time of going to print. ALSO READ: Municipality warns residents to avoid scammer posing as disconnection official The news provided to you in this link comes to you from the editorial staff of the Vryheid Herald, a sold newspaper distributed in the Vryheid area. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
12-06-2025
- Business
- The Citizen
MLM expands CCTV, upgrades infrastructure in new budget rollout
Midvaal Local Municipality (MLM) is among the few municipalities in Gauteng to adopt a fully funded budget. This is after the unanimous decision to approve the 2025/2026 Medium Term Revenue and Expenditure Framework (MTREF) and Integrated Development Plan. This means that MLM has enough capital to cover all planned expenditures, including operational and capital costs. According to MLM, the Draft Integrated Development Plan and MTREF came after months of consultations with various communities and stakeholders across the municipality. The Gauteng budget 2.0 for the 2025/26 financial year is R172.3b, an increase of some R886.6m from the budget tabled earlier this year. As Gauteng MEC for Finance and Economic Development, Lebogang Maile, tabled the Gauteng budget 2.0 for the 2025/26 financial year recently, he raised a serious concern that only four municipalities in Gauteng have tabled funded budgets while the rest remain unfunded. According to the municipality, the R2b 2025/2026 MTREF was drafted with careful consideration of the challenging economic climate facing the people of Midvaal, as well as the wider challenges faced by South Africa. This, MLM believes, showcases a government that prioritises the well-being and interests of its residents. The revenue budgeted for the year is R2.126b, an increase of 9.79% over the current year's budgeted revenue. Key service delivery projects included in this budget is R69m to replace old asbestos pipes using the Water Services Infrastructure Grant (WSIG). Phase 3 of the electrification of Sicelo in Ext 5 (Silahliwe) continues. In previous budgets, MLM allocated funding for Phases 1 and 2 in Kuvukiland and Stand 118. A total of R26m will be geared towards the construction of a substation in Savanna City, which will increase electricity capacity to support future housing developments. 'A total of R27m has been set aside in the 2024/25 budget from loan finance for road rehabilitation and the conversion of gravel roads to tar. A further R22m is allocated in the 2025/26 financial year to continue with rehabilitation and gravel-to-tar upgrades.' Furthermore, the MLM said it will give rebates of 25% and 50% on property rates. 'The threshold for qualification has been extended to five times the value of the SASSA Old Age Pension Grant, which equates to approximately R11 000.' MLM reveals that it has procured two high-speed vehicles for crime prevention purposes. 'We have made provision for the employment of law enforcement officers who will drive these high-speed vehicles, working alongside our CCTV cameras and other safety mechanisms to curb criminal activities in our municipality. The rollout of CCTV cameras in the Western and Northern regions has commenced, while a significant portion of the budget is being used to maintain existing cameras.' At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
05-06-2025
- Business
- The Citizen
Action promised on poor services
During a special council meeting, Rand West City Local Municipality adopted its annual budget, promising efficient service delivery and development going forward. • Also read: Residents voice fury over water issues Recently, the municipality held a meeting to adopt its Annual Midterm Revenue and Expenditure Framework (MTREF) or commonly known as the annual budget. The meeting saw key municipal leaders, including Executive Mayor William Matsheke, council Speaker Selina Moumakwe, Deputy Mayor Nontombi Molatlhegi and Chief Whip Mkhuseli Jokazi. According to municipal spokesperson Phillip Montshiwa, the MTREF was described as balanced, credible and fully funded. He added that it reflected good financial planning and responsible governance. 'The annual budget was adopted unanimously by all councillors and shared commitment to development and the well-being of residents. The adoption marks a key milestone in the budgeting cycle and lays a solid foundation for efficient service delivery and developmental projects in the upcoming financial period,' he concluded. Have your say by emailing the Randfontein Herald at randfonteinherald@ At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Eyewitness News
29-05-2025
- Business
- Eyewitness News
City of Ekurhuleni decides to insource essential services to strengthen internal capacity
JOHANNESBURG - The City of Ekurhuleni has finally decided to insource essential services, with 700 cleaners set to be given permanent contracts. The insourcing of workers has been a key debate in Ekurhuleni for years, with some parties believing the city needs to reduce its reliance on contractors. ALSO READ: Ekurhuleni budget: Residents to pay more for water, electricity, sanitation & refuse removal Finance MMC Jongizizwe Dlabathi announced during his budget speech on Thursday that the metro wanted to do away with outsourcing some essential services. Dlabathi said the city must strengthen its internal capacity. "This budget will give effect to the recruitment of 700 permanent cleaners and 290 permanent EMPD officers, who will look after our strategic offices and buildings. R303 million will be allocated over the MTREF towards equipping the staff with essential tools of trade, necessary to optimise performance."
IOL News
24-05-2025
- Business
- IOL News
How Durban's R70. 9 billion budget aims to transform infrastructure and manage tariff adjustments
The eThekwini Municipality's R70.9 billion proposed 2025 and 2026 Medium Term Revenue and Expenditure Framework (MTREF) budget is being scrutinised by ratepayer associations. The eThekwini Ratepayers Protest Movement said they still object to the proposed tariff increases outlined by the municipality. Image: Supplied The eThekwini Municipality's R70.9 billion proposed 2025/26 Medium Term Revenue and Expenditure Framework (MTREF) budget is being scrutinised by ratepayer associations. The MTREF reports will be discussed at a council meeting on Monday for approval. The proposed budget was approved by the Executive Committee (EXCO) on Friday. The municipality stated that the budget is shaped by extensive public consultations and National Treasury guidelines and that the budget prioritises infrastructure reconstruction, following recent storm disasters. It said the budget strengthens trading services and the assurance of sustainable service delivery. The 2025/26 budget comprises a R63.6 billion operating budget and a R7.3 billion capital budget. A significant focus of this MTREF is the reconstruction and rehabilitation of infrastructure damaged by recurring storms, with a 'build back better' approach to mitigate future risks. The budget also emphasises turnaround strategies for trading services to enhance efficiency and improve the quality of life of residents. Acknowledging the economic pressures on households, the municipality has revised several proposed tariff increases, following an extensive public participation process held from April 22 to May 17, 2025. Key adjustments for the 2025/26 financial year include: Assessment Rates: The increase was reduced from 6.5% to 5.9% Water Tariff: Residential increase reduced from 15% to 13%, and business from 16% to 14%. Sanitation Tariff: Residential increase reduced from 13% to 11%, and business from 14% to 12%. Refuse Tariff: Domestic increase reduced from 9.9% to 9% Electricity Tariff: Set at a 12.72% increase, as guided by the National Energy Regulator of South Africa (NERSA). The R7.3 billion capital budget will be funded through a combination of grants (R3.24 billion), internal funding (R2.06 billion), and external borrowing (R2 billion). The budget formulation process included comprehensive public hearings across all regions and engagement with various stakeholders, including business and traditional leaders, as well as opportunities for comment through multiple media platforms. The municipality stated that public concerns, such as high tariffs, road rehabilitation, housing project progress, and maintenance of social facilities, were taken into consideration, leading to amendments to the proposed budget. eThekwini Mayor Cyril Xaba said that following a benchmarking engagement on April 23, the National Treasury found the budget to be credible, relevant, and sustainable, while noting areas for improvement in the Municipal Standard Chart of Accounts data. Asad Gaffar, chairman of the eThekwini Ratepayers Protest Movement, said they still object to the proposed tariff increases outlined by the municipality, in the context of a deepening affordability crisis, increasing resident debt, and ongoing failures in service delivery. Gaffar said the ERPM finds these proposed increases both indefensible and unsustainable. The ERPM concerns were affordability crisis, escalating debt levels, service delivery failures, and lack of accountability. It continues to push for oversight of contractor and municipal projects. 'All proposed tariff adjustments must be suspended until there is clear evidence of improved service delivery and proper use of current revenue. The municipality must provide full disclosure on how previous tariffs were allocated, with a detailed plan for how any future increases would be used,' Gaffar said. Ish Prahladh, from the eThekwini Ratepayers and Residents Association (ERRA), said they have submitted a lengthy list of objections concerning tariff increases from all the ERRA affiliates. [email protected]
