The sale of water also showed a negative variance of 17%, which has been attributed to the actual sale being lower than predicted
INCOME to the Sol Plaatje Municipality from the sale of electricity in Kimberley dropped by 17% in July as a result of the non-implementation of the basic charge of R260.
This is according to the municipality’s budget overview report for July 2018.
According to the report, the budgeted income from electricity was R64.3 million. However, only R53 million was received for the month.
“This is mainly attributable to the non-implementation of the basic charge for domestic and commercial users,” the report states.
The sale of water also showed a negative variance of 17%, which has been attributed to the actual sale being lower than predicted.
The projected income from the sale of water was R22 million. However, actual sales only amounted to R18 million.
The report further points out that investments by the municipality that have been decreasing month-on-month was also negatively impacting the potential interest that could be generated, while fines, penalties and forfeits has also been 42% lower than anticipated. The budgeted income for this vote was R280 000. However, only R120 000 was collected for the month.
Other revenue also shows a negative variance of 57% which has been attributed to actual receipts being lower than budgeted. The budgeted amount for other revenue is R1.5 million but only R649 000 was received.
Municipal spokesperson, Sello Matsie, confirmed yesterday that foregoing the basic electricity charge had created a shortfall on the budget.
“This will have an effect on certain planned capital projects, particularly those paid for from the municipality’s own internal funding as there will not be as much money coming in from the sale of electricity as originally anticipated when the budget was drawn up,” he said.
Matsie added that this was most likely to affect those projects that had not been started. “It will make sense to focus on projects that are already under way.”
Matsie stated further that a full recovery plan would be presented to the city council for approval and adoption to address the issue. “This will be done as a matter of urgency.”
In the meantime, he called on all debtors to pay their municipal accounts. “Those consumers who owe us money must pay. Community members have a collective responsibility to pay for all the municipal services they receive.”
It was previously reported that the dropping of the R260 flat rate for electricity, income for the sale of electricity was likely to drop by an estimated R110 to R115 million a year.