Tag: #Municipalservices

Loadshedding the Last Straw

Loadshedding the Last Straw
The business community in the Highveld region of Mpumalanga has been aware for years of corruption and third-party interference at Eskom that has muddied the economy of Mpumalanga.

Many businesses have been damaged, and many have had to close because of the corrupt activities associated with the two main sectors, coal mining and Eskom, in the province. When Eskom claimed that there was not enough coal to supply Eskom to generate electricity, to awarding complex engineering contracts to an undertaker. Well, whoever awarded that contract was perhaps preparing to bury our economy.

We invite its members to join hands with the organization so that we can put pressure on the various role-players to protect our businesses. MCCI has created MCCI’s Electricity Support Group, +27 78 801 9719, or contact Anna-Marth Ott, at 013 243 2253 or ceo@middelburginfo.com.

 

Opportunities at MCCI

Opportunities at MCCI

The year’s municipal employee’s strikes, load shedding, and fuel costs have made it tough for business owners and managers. What has the local chamber done for its members?

It’s very difficult to keep everyone happy and provide great opportunities for the business community without the support of the larger business community. We have had a few people call out, “What are you doing for my business?” Become a member and attend our events and when the opportunity knocks, you will be ready.

It can also be very discouraging for staff when consultants who have received high-value grants or companies who are not members demand free support. What to do? If a thing is free, it has no value.

We create our own members-only opportunities. So join and you will have the chance to see and take advantage of the opportunities offered by the Chamber. Do not stand on the sidelines, be part of the solution.

Another legal victory for Chambers

Another legal victory for Chambers

Municipal electricity price hikes were ‘unlawfully calculated’, says court.

When chamber members work together, business wins. The Pietermaritzburg and Midlands Chamber of Business and the Nelson Mandela Bay Business Chamber took the National Energy Regulator of South Africa (NERSA) to court and won. Eskom supported the chambers’ application.

The Gauteng High Court has found that the NERSA used unlawful methodology in calculating annual electricity price increases for municipalities. It declared its guidelines and benchmarking methodology unconstitutional and gave NERSA one year to change this.

Chambers said that municipalities use electricity tariffs to pass their inefficiency costs to their consumers. They used the electricity income to pay for their management failures, including lack of infrastructure maintenance and rampant electricity and cable theft, to consumers. NERSA has not required municipalities to demonstrate the relationship between their actual costs, the tariffs they have applied for, or the benchmark tariffs.

In her order, Judge Elizabeth Kubushi also said that NERSA does not use the municipalities’ financial information to assess proposed rates for compliance with the law. Instead, it uses a sample of these forms to calculate an average rate of increase.

Steve Tshwete Municipality is one of the few that has calculated its electricity tariffs with integrity. The Middelburg Chamber of Commerce and Industry thanks STLM for doing so. Other towns have not been so lucky, and their businesses have been hurt by the poor financial management of their municipalities.  Members interested in the full judgement can contact Anna-Marth Ott at ceo@middelburginfo.com

Comment on 14 June 2022 Municipal Strike 

Comment on 14 June 2022 Municipal Strike 

The lack of service delivery by Steve Tshwete Municipality is intolerable. Many of the services provided have not been adequately delivered since 25 March 2020, when the norm was to work (or not work) from home. Covid19 Lockdown has broken the municipality and created a culture of poor work performance.

The STLM leadership has given the strikers the power to ruin our town by giving in to their demands. Essential and vital services to the business community are not being provided. The current situation cannot be allowed to continue. Ignoring the complaints and demands of the businesses does not mean that the problems will miraculously disappear; no, the situation will worsen. The state of affairs creates an ideal environment for corruption and bribes. Also, why are the strikers allowed to use municipal vehicles as transport for the strike?

MCCI is asking the business community: are you satisfied? Will the problems be miraculously fixed once STLM is working again? Nowhere in business will a problem disappear if you ignore it, you have to work on the problem to solve it. Your silence means you agree with the municipalities decisions and lack of service. Significant future investments and developments are being hampered by the political gamesmanship of our STLM leadership and councillors.

Perhaps we should look at what STLM services can be outsourced to make the economy work? MCCI will ask the various political parties to meet with the Executive Committee to find a solution to make our city fully functional and attractive for investment.