Ugu

DearSA-ugu-budget-2022-3
DEAR-SOUTH-AfFRICA

Ugu District (Ray Nkonyeni, Umdoni, Umuziwabantu, Umzumbe) calls for public comment on proposed tariff increases, the draft budget and IDP

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    The Ugu District Municipality 🌊 on the South Coast of KwaZulu-Natal is in a particularly tight spot this year. As the Water Services Authority (WSA) for the entire region, Ugu determines the water and sanitation costs for all the local towns. Because of its ongoing financial recovery plan and massive infrastructure debt to uMgeni-uThukela Water, its figures are often higher than the national average.

    INCREASES ARE AS FOLLOWS

    Staff salaries 4.75%

    Electricity Property Rates 🏠 Refuse 🗑️ Water & San (WSA: Ugu) 💧
    Ray Nkonyeni (Port Shepstone) 9.01% 4.8% 4.8% ~6.0% – 9.0%
    Umdoni (Scottburgh) 9.01% 4.5% 5.0% ~6.0% – 9.0%
    Umuziwabantu (Harding) 8.76% (E)* 4.3% 4.3% ~6.0% – 9.0%
    Umzumbe 8.76% (E)* 4.5% 4.5% ~6.0% – 9.0%
    Staff Salary Benchmark 4.75% 4.75% 4.75% 4.75%

    * (E) = These areas are primarily Eskom-direct, meaning the municipality doesn’t set the rate. They follow the 8.76% Eskom-direct increase approved by NERSA.

      • The Ugu Water Debt Trap: Ugu is attempting to fund the massive uMkomazi Water Project bulk costs. While the direct tariff increase is projected at roughly 6% to 9%, the “hidden” cost is in the fixed service charges, which are being hiked to address the district’s R1 billion+ debt. 🌊
      • Ray Nkonyeni’s Tourism Tension: As a major tourism hub, RNM has kept rates at 4.8% (slightly above the 4.75% salary benchmark). However, businesses in Margate and Port Shepstone are highlighting that the combined cost of electricity and water is rising faster than their turnover. 🏨
      • Umuziwabantu’s Collection Crisis: With a collection rate of only 68%, this municipality is very dependent on grants. Their “low” 4.3% increase for rates is a survival tactic—hiking it higher might lead to even lower payment levels. 📉
      • The Salary Gap: In almost every town in Ugu, the cost of essentials (Water & Electricity) is rising by nearly double the 4.75% salary increase given to the officials managing those services. 👔

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