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Brace Yourselves for NMB’s Achilles Heel: A Bankrupt Electricity Department

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[Listen to a soundbite by Cllr Morné Steyn]

Dear Editor

The 2024/25 budget that was adopted by the Nelson Mandela Bay (NMB) Council today, will see ratepayers forking out R1,447 billion to cover the losses of a collapsing Electricity and Energy department. The beleaguered department has already seen a 250% increase in its year-on-year deficit for the current financial year.

The perilous financial state of the Electricity Department has the potential of destroying the financial sustainability of the Metro altogether. This is why it is imperative that Council immediately tackles the inherent problems within the department.

Despite the rampant financial losses that the Electricity Department is suffering, NMB has approached NERSA for approval of a 12,74% hike in electricity tariffs as from 1 July 2024.

The approval of the R20 billion NMB budget today comes on the back of a disastrous financial year where the Metro forfeited nearly R430 million to National Treasury due to an inability to spend conditional grant funding. The DA has made it clear that it is totally immoral to increase tariffs when hundreds of millions of Rands are lost because of incompetence and mismanagement.

Amongst others the DA had the following demands in respect of the budget:

  1. A costed turnaround plan be implemented to curtail the rampant electricity losses in the Metro.
  2. The proposed change in inclining block tariff structures be discarded. This proposal would cost domestic consumers a 54% increase for the first 300 units of electricity purchased.
  3. Punitive water tariffs be lifted altogether as it is immoral to charge residents punitive tariffs for water when the dams are overflowing.
  4. A costed turnaround plan be implemented to curtail the rampant water losses in the Metro.
  5. Long outstanding senior management positions be filled within 3 months.
  6. A more equitable or fair rates tariff for peri-urban small holdings.
  7. Sufficient budget for basic service delivery so that streetlights, potholes, water, and sewage leaks can be fixed.

The DA is in your corner, fighting for you. Together we can get NMB working again.

Regards

Cllr Morné Steyn
DA NMB Acting Caucus Leader

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Ed Richardson is the managing director and brain behind the Siyathetha brand and is rumoured to be one of the most effective weapons of mass communication in the Eastern Cape. See more articles by Siyathetha.