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The Democratic Alliance (DA) in Nala Local Municipality is pleased to announce that our proposals for tariff reductions in line with inflation have secured a reduction of 3.6% in the electricity tariff for the 2023/24 Medium Term Budget. This reduction comes after NERSA approved an increase of 15.1%, lower than the initially proposed 18.7%.

To ensure a sustainable budget that effectively funds operating and capital expenditures, key initiatives must be implemented. These initiatives include maintaining a collection rate of at least 60%, still far below the national norm of 95%, implementing cost containment measures, improving efficiency across all units, and enhancing internal controls. The Finance Committee and Budget Steering Committee will oversee subsequent applications to NERSA for reasonable and affordable electricity tariffs.

Our objective is to address the budget deficit and improve revenue collection while ensuring that tariff and property rate increases remain affordable for the community. We recognize the need for cost-reflective tariffs while considering the development backlogs and poverty in Nala communities. By working towards financial stability and meeting payment arrangements with suppliers and creditors, we aim to counter the breakdowns in service delivery experience in the municipality.

The DA remains committed to achieving sustainable and responsible financial management, prioritizing the needs of the community, and ensuring that the municipality's resources are utilized effectively to improve the lives of residents.

Issued by David Ross - DA Chairperson Section 80 Finance Committee Nala Local Municipality