/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

On 1 July 2024, Maluti-a-Phofung Local Municipality implemented new electricity price increases. The municipality enforced approximately a 13.7% tariff increase, while the Council only approved a 12.7% increase. This approximately 1% discrepancy must be reversed, and the overcharged money credited to customers' accounts. To make matters worse NERSA approved MaP price increases of 2% below the municipal budget, making the municipal budget unable to be implemented.

The municipality also failed to produce an electricity cost of supply study, which, according to a recent High Court ruling, means it is unable to implement any cost increases. NERSA has applied to appeal this judgment. The South African Local Government Association (SALGA) has not provided the DA with a definitive answer on whether the municipality can implement a price increase before the appeal decision. To avoid being in contempt of court, the municipality should err on the side of caution.

This cost study would highlight the costs of staff, electricity infrastructure maintenance, electricity losses, etc., and needs to be workshopped in public participation processes, requiring approximately four months to conclude.

We have also raised the issue of the budget tabling process with CoGTA. The budget must be presented by the Mayor, and when this occurred, the presumed Mayor had resigned. We are confident that we will be proven right on this issue.

Although an extra 1% in electricity charges is significant, the DA is exceptionally disappointed with the substandard performance of senior politicians and staff at the municipality. Enquiries made on 1 July were ignored, with explanations that could easily prove to be incorrect.

We urge all residents who bought prepaid electricity to keep a record of their purchases since 1 July 2024. The Municipality should be able to obtain records from Syntel as to which accounts were active at that time as well.

Issued by Alison Oates - DA Councillor Maluti-a-Phofung Local Municipality