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Buffalo City Municipality (BCM) has announced tariff reductions in the R10billion 2022/2023 medium-term budget approved by Council this week.
"In line with the tough current economic conditions, the Buffalo City Metro has approved a pro-poor budget which will bring a relief to its residents," BCM said in a statement on Friday.
Spokesperson, Samnkelo Ngwenya, said the budget will see the tariff for electricity and water reduced significantly.
"The electricity purchase has also been revised and lowered as approved by the regulator, Nersa," he said.
In addition, Buffalo City is also expected to announce increments on free indigent grants and subsidies for the poor in the upcoming State of the City Address.
a) Electricity tariff reduced from 9.61% to 7.47% as approved by NERSA.
b) Water tariff reduced from 9.64% to 6.78%. The tariff of 6.78% is based on the final approved tariff of 5.78% by the Amatola Water Board plus 1% for the drought provision tariff.
c) Electricity purchase revised from 9.61% to 7.47% in 2022/2023 as approved by NERSA.
d) Water purchase revised from 9.64% to 5.78% in 2022/2023 as approved by Amatola Water.
"Before being passed by Council, a councillors workshop was held where the Metro’s budget was proven to be funded, credible and sustainable over the MTREF in terms of Section 18 of the MFMA," Ngwenya said.
He said of the total budget, R996 million has been ringfenced for projects in the coastal region which includes East London, Duncan Village and surrounding villages.
