Over the past years, the City has given the first 6kl of water free to all ratepayers.
From this financial year, this will only apply to registered indigents and those with a maximum property value of R750 000.
The City is forced to relook this practice as it is in contrast to national policy, where the national allocation to municipalities, in the form of equitable share, excludes non-indigent households. Revenue generated from the sale of 6kl to household with property values exceeding R750 000 will be used fund additional indigents resulting from the review of Indigent Support Policy.
Free basic services. “There is a sizeable number of poor households that regularly exceed their monthly allocation of free basic services” – MMC for Finance and Economic Development Cllr Doctor Xhakaza, 2018 #CoEBudget
Because of this, the City subsidises not only the allocated free services but also the additional usage.
This practice has a detrimental effect on the finances of the City:
➢ The City subsidises those households with more than what it receives from the national fiscas; and
➢ Other deserving households are denied the opportunity to receive free services due to those households that are “double dipping”.
For more information, visit the City of Ekurhuleni website.