MAKHADO (LOUIS TRICHARDT) – Council will lose one of its major sources of income with the transfer of its electricity distribution and revenue to the Regional Electricity Distributors.

This gave rise to questions as to how Council will be able to keep on delivering essential services. It is said that between 60% and 70% of Council’s monthly income is derived from the selling of electricity to consumers. It is widely speculated and feared that the only way Council will be able to recover the shortfall in its operating budget is to impose ludicrously high new property rates. In last week’s Zoutpansberger, Council already called for tenders for persons to draw up a new property rate policy for Council. A couple of months ago, Council also lost another major source of income when water provision was transferred to the Vhembe District Municipality. This all comes amidst the dire financial crisis Council finds itself in, not being able to pay their salary bill four months ago. At this stage, Council is still trying to recover from the financial crisis, after a loan had to be made to pay employees.

The concept of transferring the distribution of electricity from municipalities and Eskom to Regional Electricity Distributors (RED) has been around for many years and will become reality in June/July this year. There are six RED regions countrywide with the Makhado Municipality falling in the sixth region. The sixth region starts just north of Pretoria. In an effort to determine Council’s share in RED, it is at present in the process of doing an asset assessment. Municipalities will remain a shareholder in RED, as will Eskom.

On Tuesday, Council was asked to comment on the fears of residents regarding the possible increase in property rates and other aspects regarding the transfer of Council’s electricity distribution to RED. By the time of going to press on Wednesday, Council’s Director of Corporate Services, Mr Peter Magwala, stated, however, that they are unable to comment at this stage, as the whole matter will only be discussed during an Executive Committee meeting on Thursday. He said Council would be able to shed more light on the issue by next week.

Mrs Marie Helm, local chairperson of the Democratic Alliance warned on Tuesday that Council is fast becoming a ‘roads, cemetery and public toilet’ municipality.

“The DA is very concerned that no provision is being made for the loss of income. Will the RED pay for the infrastructure that was originally paid for by the local tax payers or is this a free-for-all transfer, without any accountability?” she asked.

Mrs Helm went on to say that the DA predicts that property taxes will go through the roof.

“ANC’s assurances that this will not happen, seem not be worth much,” Mrs Helm said. She added that “if the ANC keep their promise not to increase property tax, which is highly unlikely, the DA predicts that this move will in all probability prove to be deadly for democracy. This will make local government totally dependent of the national government, as Big Brother, for all income. The consequences are easy to predict. Local government will do what Big Brother is saying …” Mrs Helm said.

As part of Council’s asset assessment, workers on foot and by vehicles will be working in the field and on farms under the overhead lines and at the meter boxes. This will not interfere with the normal electrical supply. Personnel will at all times be wearing blue overalls and yellow T-shirts with ‘Vhukhani Electrical’ printed on the back. They will also be wearing yellow hard hats which will make them easy to identify. Each worker will also be in possession of a company ID card. All vehicles will bear the Council’s emblem on the door.