Steep tariff hikes proposed for Nelson Mandela Bay

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Nelson Mandela Bay residents could in for steep tariff hikes of up to 30.3% over the next three financial years.

DA Provincial Leader, Nqaba Bhanga, said in a statement on Monday that the “proposed rates increase for the upcoming 2020/2021 financial year, would see residents paying close to double the current rate of inflation.”

He said this could lead to a catastrophic economic collapse during a time when the economy is being laid low by the Covid-19 pandemic.

Bhanga said that the Municipality was proposing the following tariff increases in the draft budget for the 2020/2021 financial year:

• Rates – 8.5%
• Water – 8%
• Sanitation – 8%
• Refuse – 8%
• Electricity - 6.22%

“The rates increase for the following two years are proposed at 9.5% in the 2021/22 financial year and 9.6% in the 2022/2023 financial year. This equates to a whopping 30.3% increase in property rates accounts over the three-year Medium Term Revenue and Expenditure Framework (MTREF),” he said.

Bhanga said any increases in rates and refuse and sanitation increases, if any, must stay within the CPI band, while water and electricity tariff increase must be equal to the increase in the cost of bulk services.

“These exorbitant and unrealistic rates and tariff increases make a mockery of the economic relief plans by the provincial and national government, to mitigate the economic impact of the Covid-19 pandemic,” Bhanga said.

Meanwhile, Patriotic Alliance councillor, Marlon Daniels, said he would not be supporting any tariff hikes.

“It is ill-timed to that on the back of Nelson Mandela Bay having the highest unemployment rate of all the Metros in the country,” he said, adding that the Metro is also dealing with the Covid19 pandemic.

Council is expected to hold a virtual meeting on Friday.