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Budget Speech 2022 – Zero tolerance for electricity theft

The City of Tshwane will not tolerate electricity theft – whether through illegal connections or bypassing prepaid meters. Electricity theft is a major problem which has seen the City losing approximately R470 million per annum. This is R470 million taken away from service delivery by individuals and business owners in Tshwane through pure arrogance and entitlement. In delivering the 2022/23 Budget Speech, City of Tshwane MMC for Finance, Ald Peter Sutton, indicated that the theft of electricity will end now.

Ald Sutton indicated that the fines for illegal connections and electricity theft will be R200 000 for individual or household accounts and R10 million for business accounts. “In addition to these fines, we will also lay criminal charges and pursue recovery of lost income,” he said.

The City will announce an amnesty period of one month where those individuals and business owners guilty of electrify theft can apply for amnesty to be exempted from prosecution and fines under certain conditions. Those who are guilty can make use of this once-off opportunity. More details will be announced on this in June 2022.

The 2022/23 budget is geared towards maintaining financial stability to advance service delivery and drive critical infrastructure investment.

Here are highlights from the 2022/23 budget:

Rates and tariffs 

  • The City is proposing a 6% increase for property rates and refuse removal will also increase by 6%.
  • The City is proposing a tariff increase of 7,47% for electricity effective 1 July 2022.
  • Water tariffs will increase by 9% and sanitation charges will also increase by 9%. 

Cable theft: R10 million was allocated towards the Cable Theft Unit.

Smart prepaid meters: An additional R57 million has been allocated to fast-track the installation of smart meters.

Electricity and water infrastructure investment 

R1,2 billion of the capital budget will go towards the prioritisation of the electrical grid and water infrastructure in Tshwane.

Water and sanitation 

R5,4 billion was allocated for the 2022/23 financial year.

 

Energy and Electricity Department

For the 2022/23 financial year, we have allocated the department a handsome chunk of the pie totalling R11,9 billion for its operational budget. 

Enhancing core basic service delivery

Our Regional Operations and Coordination Department is tasked with delivering core services to our residents. With an allocation of R3,1 billion, the department will work to ensure that the City maintains its everyday infrastructure. The budget will be spread out across all seven regions of Tshwane.

  • To address blockages, R58 million was allocated
  • For road maintenance, R154 million was allocated
  • For potholes and road repairs, R62 million was allocated
  • To repair sinkholes, an amount of R29,5 million was allocated

 

Driving inclusive economic growth 

An allocation of R5,7 million will go towards supporting small, medium and micro enterprises (SMMEs) and local economic development initiatives.

 

Driving innovation and technology. 

R11 million will go towards the completion of the e-health system, which will start allowing for the digitisation of municipal clinic services.

A budget of R23 million has been allocated to restore Wi-Fi connections at affected sites.

Keeping our city clean and safeguarding the environment: R2 billion was allocated 

Creating a safe and caring city: R986 million was allocated

 

Funding sustainable housing solutions 

Our 2022/23 financial year budget makes provision for R411 million towards capital projects and R970 million for operational expenditure for the Human Settlements Department.

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