(Archive photo: Eskom)
The JB Marks local municipality’s proposed power tariff increases could raise serious legal, financial and management issues.
AfriForum therefore makes an urgent appeal to the municipality to first apply proper debt collection and tackle the thorny issue of illegal connections, before introducing any new tariff structures for the 2026/27 financial year.
According to AfriForum, the proposed tariff structure is not at all in line with legal requirements for fairness, transparency and the efficient use of resources.
The organization points out that this is contrary to provisions in the Constitution, the Municipal Financial Management Act 56 of 2003 and the Municipal Systems Act 32 of 2000.
Financial burden of mismanagement
Alta Pretorius, AfriForum’s district coordinator for the Mooi River, says the municipality is trying to make up for its own shortcomings from the community.
(Foto: Facebook/JB Marks Local Municipality)
“The municipality is trying to shift the financial burden of poor management, insufficient revenue collection and possible corruption onto law-abiding residents and businesses,” she says.
The proposed increases include, among other things, increases in fixed monthly charges, high peak time rates, and increases in residential and business rates per kWh.
AfriForum emphasizes that these increases are further exacerbated by consumers now having to pay more regardless of their actual electricity consumption.
Concerns about officials’ role
The organization also expressed its concern about municipal officials’ alleged involvement in illegal connections in its letter to the municipality.
An illegal power connection is removed. (Archive photo: Eskom)
“It is unacceptable that paying residents have to pay for losses due to illegal connections and poor financial management,” says Pretorius.
“The principle of tariffs that reflect real costs cannot be used as a cover to cover up the consequences of mismanagement, non-payment and corruption on consumers.”
The organization now requests complete transparency from the municipality about all costs and losses regarding electricity supply. He also demands that the rate increases be reconsidered, until all management issues are thoroughly clarified.
Douglas Bourn, chairman of AfriForum’s Potchefstroom branch, says the community can no longer serve as a lifeline for the municipality.
“The municipality cannot expect communities to subsidize continued mismanagement and alleged corruption through these rate increases.”