Electricity main source of revenue for Nelson Mandela Bay

01 Feb 2016 | Admin Author

Service charges for electricity will account for 41.51% of total revenue accruing to the municipality in the next financial year, according to the 2013/14 Budget presented to Council.

Council is scheduled to pass the Budget when it meets on Friday.

The Budget shows that R3.07b of total revenue of just under R7.4b will come from service charges for electricity.

Documentation presented with the Budget states that the growth of revenue from service charges generally can be attributed mainly to increased electricity revenue as a result of significant increases in the Eskom bulk electricity tariffs.

The second largest revenue source for the 2013/14 financial year is property rates, which will contribute R1.2 billion or 16.4%.

The third largest source of revenue is operating grants and transfers from national and provincial government which accounts for R1.1 billion or 15.13% in 2013/14.

The largest contributors are the equitable share of national revenue received by the municipality which amounts to R743.3 million, the R206.9 million it will get from the Provincial Department of Human Settlements for housing top structures, and R100 million as a Public Transport Network Operations Grant.

The fourth highest revenue source is simply listed as other revenue,” which consists of income from such diverse sources as fees for building plans and amounts payable for disconnections and re-connections.

Revenue from this source amounts to R690.9 million or 9.34% of total revenue.

(Source: Metro Minute to subscribe mail metminutes@iafrica.com)