eThekwini passes budget with reduced tariff increases for water, electricity

04 May 2024 - 09:10
By Lwazi Hlangu
eThekwini mayor Mxolisi Kaunda says the city has heard concerns from ratepayers and residents that the proposed tariff increases were too high. File photo.
Image: SANDILE NDLOVU eThekwini mayor Mxolisi Kaunda says the city has heard concerns from ratepayers and residents that the proposed tariff increases were too high. File photo.

The eThekwini municipality on Friday approved its final budget for the 2024/25 financial year, after a revision of tariff hikes.

Mayor Mxolisi Kaunda presented the consolidated budget during a special council meeting at the Durban ICC. 

“We wish to reiterate that the ANC-led government listens to communities when they raise their concerns, in response to your complaints that the proposed tariff increases were too high,” Kaunda said. 

As promised during the state of the city address on Tuesday, Kaunda presented revised tariff increases for electricity, water, sanitation and property rates.

Water and sanitation tariff increases were reduced from the proposed 14.9% to 10.9% and from 12.9% to 10.9% respectively.

The electricity increase was adjusted from the initially proposed 14% to 12.72% and property rates tariff increase from a proposed 7.9% to 6.5%. 

The refuse tariff increase was reduced from the proposed 8% to 7% for domestic households and from 9% to 8% for businesses. 

The DA’s Thabani Mthethwa called for a 0% increase in tariffs until the city resolves its service delivery shortages. 

“Anyone who resides in eThekwini knows the delivery of services has all but collapsed so there’s no way we can sit here and deliberate the possibility to increase tariffs while services are not delivered into the residents of our city. That’s why we propose that we amend so that there is no tariff increase.” 

ActionSA leader Zwakele Mncwango then proposed that the hikes be amended to match the current inflation rate of 5.3%.

Both amendment proposals were beaten by 36 votes and thus rejected when 93 councillors, mainly from the ANC and some smaller parties, voted against them as opposed to the 57 from the DA, ActionSA and other smaller parties who supported them. The EFF caucus formed the majority of the 20 who abstained. 

The budget was adopted when 112 councillors, including the EFF caucus, voted for it against the 57 who voted against it, with one councillor abstaining. 

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