At the close of July 2024, Newcastle residents were shocked to find their monthly municipal utility bills had soared, pushing financially strained households to further economise. Unfortunately, the situation is poised to worsen, with another increase anticipated at the end of August 2024.
But what exactly caused the recent hikes in July 2024? And why are the municipal bills about to increase again at the end of the month?
The Newcastle Municipality’s Communications Unit provided some clarity on the matter to Newcastillian News: The significant increase in property rates, sewage, refuse, sundry income such as rental income, and availability charges for water and electricity were all implemented as of 1 July 2024, and these changes are now reflecting in the July 2024 accounts.
Included in these increases are the following services:
- Property rates increased by 6%.
- Sundry tariffs rose by 6%.
- Sanitation (sewage) tariffs climbed by 6%.
- Refuse tariffs surged by 6%.
With these notable increases already affecting residents’ utility bills, the Municipality’s Communications Unit highlighted that residents should prepare for the increase in their water and electricity consumption tariffs, which will reflect on their August municipal bill.
As reported by Newcastillian News, the tariffs for these two services officially took effect as of 1 July 2024, with electricity tariffs rising by 11.23% and water tariffs increasing by 6%.
At the time, Newcastle Municipality Speaker of Council, Cllr Thengi Zulu, explained that while NERSA approved an electricity tariff increase of 12.74%, the Newcastle Municipality opted for a slightly lower increase of just over 11%, acknowledging the challenges faced by residents.
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In light of these looming increases, Newcastillian News requested that the Newcastle Municipality provide the necessary calculations used to determine the municipal bills, so residents could better understand what to expect at the end of August.
However, the Newcastle Municipality’s Communications Unit responded, saying, “This is a difficult one to answer, as the fixed charges such as sanitation, refuse, water, and electricity availability charges, along with water and consumption charges, will increase according to the approved tariff hikes. The property rates amount will be calculated by applying the new tariff for a particular property category to the new value of the property. Since all increases, except for water and electricity consumption, have already been reflected in the July bill, which was due on 7 August 2024, residents already have an idea of the impact on their municipal bill.”
Although they refrained from providing the specific calculations used for the monthly municipal accounts, the Communications Unit added, “The tariff increases will enable us to better serve the community, but it’s crucial that residents pay their municipal bills to ensure improved service delivery.”
Additionally, the Communications Unit pointed out that these tariff increases were approved by the Council, and the Municipality is guided by the tariff increase guidelines provided by Provincial and National Treasury, CoGTA, and NERSA.
Furthermore, with Newcastillians expected to fork out even more money at the end of the month, the burning question now stands, what steps can residents take if they cannot afford the increase in tariffs?
The Communications Unit advised, “Residents should come to the municipality to make payment arrangements or complete the necessary form for a payment extension if they cannot afford the municipal bill. However, it must be noted that this should not become a monthly recurrence.”
As Newcastillians brace themselves for a utility bill increase of just over 17% at the end of August, what are your thoughts on these developments? Share your views in the comment section below.
Comments 1
What a load of crap! Not like salaries increase and half of the town has severe water issues. # crossfire