PLETTENBERG BAY NEWS - The Plettenberg Bay Ratepayers Association has warned the Bitou Municipality that it could face a legal class action over the unilateral imposition of unrealistic tariff charges for water, sewerage and refuse to businesses and estates.

The warning was made to senior council officials, including the mayor and DA councillors, should they not respond to the public and find an amicable solution to the problem.

The municipality is required to do "zero based budgeting" to determine the exact cost of delivering a service, and then may add a reasonable margin for repairs and expansion, and that dictates the tariff increase.

"This has not been done at Bitou, and for years we have received thumb-suck increases. There has been no effort to cut costs or increase efficiency, but rather just a percentage added onto an inflated price," said the Ratepayers.

Availability charge
In December the municipality increased the water availability charge, without consultation or explanation, on businesses that have several units within them.

"Even though some of the units may not even have water and share a communal toilet, they are now being charged an availability charge on each unit. In some cases, a business' availability charge was increased 27-fold," said the Ratepayers.

Businesses have lodged disputes with the municipality but have not received responses to the disputes, only letters of demand and threats to cut off their water or electricity.

The affected businesses have formed a WhatsApp group and between 30 and 40 have joined. They are obtaining a legal opinion and considering a class action suit against Bitou Municipality.

Cape Town
Comparisons with similar rated properties in Cape Town - considered an expensive city - indicate that the metro's tariffs are a third of those in Bitou.

"There has been no explanation on how they arrived at the three tariff charges for estates. The charges far exceed the service charges in Cape Town. The tariffs and their definitions have been gerrymandered to produce the desired outcomes without thought to fairness or justification.

"Various estates are also affected by the new tariffs on sewerage, waste and water," said the Ratepayers.

One estate is being charged R70 000 per month for nine bins of garbage twice a week. Another estate said the tariffs increased fourfold in one fell swoop, resulting in each resident paying R4 000 to R6 000 per month for water, sewerage and waste.

"No warning, no consultation, no justification, just an increase," said the Ratepayers statement.

"The charges for business versus estates vary widely and there is no logical explanation or cost basis for the charges."

Comment
Knysna Plett Herald requested comment from the acting municipal manager, Victor Felton, and communications manager, Andile Namntu, on 1 September.

Felton followed up on the request to Namntu on 4 September. When received, the municipality's comment will be reflected.

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