Consumers brace themselves for 12.7% increase in electricity tariffs

Makhado Mayor Dorcus Mboyi delivered her 2024/25 budget speech at the Makhado Show Grounds last Friday, announcing a 12.7% increase in electricity tariffs and a 4.9% increase in property rates and other services for consumers in the municipal area, effective from 1 July this year.

The total operating budget for the financial year is just below R1.4-billion, which constitutes a mere 0.35% increase on the total operating budget for the previous fiscal year, which totalled R1.395-billion. For this financial year, the municipality plans to receive R761.5-million from their own trading, while the rest of the money will come from grants totalling just over R638.21-million. Regarding operational expenditure, the municipality budgeted for R1.19-billion, with their budget for capital projects totalling R319.92-million.

Where will the money come from?

As indicated, the municipality plans to derive revenue from the sale of services, totalling R761.5-million. The rest of the income needed to keep the doors open will come from grants, totalling just over R638.21-million. Of this, R509.84-million will come from the national treasury, R105.49-million from the municipal infrastructure grant (MIG), R1.9-million from the financial management grant, just over R2.5-million from the extended public works programme, and just over R6-million from the disaster management grant. Grants make up roughly 45% of the municipality’s planned income.

Capital projects

As for the R319-million to be spent on capital projects, the bulk of the money, totalling R179-million, will be spent on the municipality’s roads, with electricity projects coming in second place with R81-million. R39-million will be spent on buildings, and R6-million on “information communication technology and other related assets”. R8-million will go towards improving the municipality’s transport fleet and heavy machinery, while waste management will get R2-million and community services R4-million.

Which roads and infrastructure will receive attention?

The projects budgeted for include:

* R21.4-million for the upgrading of the Tsianda Marundu road to the military base, phase 1;
* R28.3-million for the upgrading of the Luvhalani to Dzananwa access road;
* R38.7-million for the upgrading of the Midoroni Clinic ring road;
* R11.6-million for the Makatu to Tshikota access road;
* R10-million for the construction of the Dzanani Taxi Rank and market stalls;
* R15-million for the development of roads and stormwater pipes at Tshikota’s 164 new stands;
* R20-million for the development of roads and stormwater pipes at the new 700 stands south of Pretorius Street;
* R8-million for the further development of Potgieter Park; and
* R2-million each for the upgrading of Sivananda, Netshisaulu, Celliers, Nngweni, Bauhinia, Douthwait, and Kort/Krogh Street.

A total of R17.4-million has also been budgeted for the scoping and design stages of 44 projects, which include the building of a “state-of-the-art” hall; an admin block for a traffic station in the Waterval and Luvuvhu area, including driving licence and testing stations; rehabilitation of surfaced landing strip and roads at the Makhado airport just outside Louis Trichardt; and the construction or upgrade of ring roads at, among others, Waterval Crèche to ZCC Church, Rathidili, N’waxinyamani to Tshivhade, Mavhina to Bungeni, Phadzima Tshitavha Mudzulathungo, and Tshirolwe Extension 2 to Extension 3.

Electricity grid to get revamp

Several electrical projects are to be implemented in the coming financial year. A total of R15.8-million has been budgeted for preventative maintenance and specifically for rotten-pole replacement in the Musekwa, Levubu, Sinthumule, Kutama, Mudimeli, Tshiendeulu, Tshipise, Bandelierkop, Mashau, Tshifhire, and Mara area, and also for high-voltage and low-voltage-line maintenance.

With regard to the Integrated National Electrification Programme grant, R12.51-million will be spent on 225 electrical connections at Tshituni tsha Manyadzha/Makongoza and Mapakophele (R4.5-million), 132 connections at Mpofu (R2.64-million), 230 connections at Mulima (R4.43-million), and R932,000 on the pre-engineering phase for connections at Tsianda, Xinkuwani Xilumani, and Woyoza.

In their quest to strengthen electricity supply, the municipality will also aggressively procure mini-subs, auto reclosers, ring main units, voltage regulators, and replace Levubu’s wooden poles with cement ones; proceed with the upgrading of the main substation phase 3, Emmarentia substation, Boom Park substation, Eltivillas East substation, Roodewal substation, and Pretorius Street south substation; upgrade the 66kV breakers on the Levubu and Beaufort substation, upgrade the 66kV Mpheni transmission line; and construct a new Bergview (east) substation and Mara feeder split. A total amount of R26.1-million has been budgeted for strengthening the electricity network.

An amount of R2-million has also been budgeted to install solar-energy panels in the municipal building as a measure to reduce energy demand, and R300,000 has been budgeted for post connections in the municipal area.

What about the salary bill?

Regarding general expenses and other expenditure, including contracted services, an amount of R238.38-million was budgeted. The municipality budgeted for an overall salary and wage increment of 5.4%, “based on the bargaining council agreement effective from 1 July 2024 to 30 June 2025”. According to them, the total salary bill amounts to R329.11-million, which represents 28% of the total operating budget, but this does not include the money spent on contracted services.

Date:27 June 2024

By: Andries van Zyl

Andries joined the Zoutpansberger and Limpopo Mirror in April 1993 as a darkroom assistant. Within a couple of months he moved over to the production side of the newspaper and eventually doubled as a reporter. In 1995 he left the newspaper group and travelled overseas for a couple of months. In 1996, Andries rejoined the Zoutpansberger as a reporter. In August 2002, he was appointed as News Editor of the Zoutpansberger, a position he holds until today.

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