Finance
- Whether he and his Department have plans to assist municipalities financially with regard to the new increased electricity tariff to prevent the overburdening of municipalities and consumers; if not, why not; if so, what are the relevant details?
In terms of the provincial fiscal framework generating provincial finances, no direct financial support is planned to assist municipalities financially with regard to the new increased electricity tariff to prevent the overburdening of municipalities and consumers. Electricity supply is a trading service and by implication municipalities are required to cover costs from sales in a typical demand and supply structure.
• Provincial Treasury is providing support and assistance to municipalities in respect of Tariff Modelling, where municipalities are assisted in determining the most appropriate tariff, taking into account cost coverage and affordability. In this regard, municipalities are advised on setting a tariff that covers costs which ensures that the municipality can charge households for services without running into a deficit, while considering the ability of consumers to pay for services received.
