2 days ago
Tariff shock: 11.3% power increase announced
Mogale City Local Municipality's (MCLM) Mayor Lucky Sele announced the approval of the medium-term revenue and expenditure framework (MTREF) budget, which was adopted at the recent council sitting on June 10.
• Also read: Mogale City's draft budget Part 12: Mogale vows to curb wasteful spending
Mayoral spokesperson Palesa Molefe stated that this R5.6b budget is to translate their priorities of the integrated development plan (IDP) into practical and community-driven plans.
'This budget aligns firmly with our strategic objective of positioning MCLM as a competitive urban city centre within the Gauteng City Region.
It reinforces the continuity of our long-term spatial vision, while introducing pragmatic steps to strengthen financial governance, reduce service delivery risks, and channel investment towards areas of greatest developmental particularly in our townships and peri-urban communities,' said Sele.
Molefe added that the 2025/ 26 MTREF reflects a balanced and Batho-Pele (people first) governance approach to resource allocation and notable investments, which include:
• A capital expenditure budget of R501m, comprising R289m from national and provincial grants and R212m from municipal own revenue
• An allocation of R98m towards road resurfacing, sewer spillage repairs, and electricity streetlight maintenance
• An initial R24m investment (R48m over MTREF) to phase out the use of chemical toilets, in favour of environmentally sustainable and dignified Enviro Loo facilities. Another R16.5m has been allocated to the Brickvale Housing Initiative, while R15m has been set aside for the development of the Swaneville Industrial Park
'Provision has also been made to strengthen youth development initiatives, local procurement programmes, and digital transformation within municipal service departments aimed at building institutional agility and enhancing citizen access to services,' she said.
She revealed there will be a 0% increase in property rates for the next three financial years.
'In addition, extended rebates for pensioners and residential property owners have been approved,' she continued.
She added, other tariff adjustments for the 2025/26 financial year include:
• A 4.3% increase in refuse removal and sundry tariffs
• A 15.3% increase in water and sanitation tariffs, as determined by the Rand Water Board
• An 11.3% increase in electricity tariffs, under the National Energy Regulator of South Africa directive
Molefe stated the budget is fully funded, with a projected operating surplus of R37m. The municipality has set a targeted collection rate of 90% to be achieved through strengthened credit control measures, implementation of smart metering to reduce technical losses, and the continued rollout of the Mogale Ya Tima disconnection campaign for non-payment.
'Cost containment remains a priority. The municipality will be reducing reliance on contracted services and optimising internal capacity to ensure value for money. The mayor will continue to champion engagements with various stakeholders, particularly on tariffs, thus mayoral imbizos will be rolled out. Council's resounding support for the 2025/ 26 Budget demonstrates a collective commitment to accelerated service delivery, fiscal discipline, and improved accountability.
The municipality remains unwavering in its pursuit to build a capable, responsive, and developmental local government, one that puts people first and ensures that no resident is left behind,' she concluded.
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