Newcastle Municipality addresses billing concerns and meter accuracy after ratepayers' protest
Newcastle Municipality municipal manager Zamani Mcineka has said the municipality is addressing billing concerns that were raised by ratepayers.
Image: Newcastle Municipality/ Facebook
Newcastle Municipality has defended its billing system following a protest by residents earlier this month, saying many of the claims made by the organisers are based on “misperceptions” about rates, service charges, and how property values are determined.
Residents from the Concerned Newcastle Citizens group marched to the municipal building a few weeks ago, calling for the municipality to review high rates, correct alleged billing inaccuracies, and address service delivery failures. The group handed over a memorandum to municipal leaders.
In an interview with The Mercury, municipal manager Zamani Mncineka said the municipality had engaged repeatedly with residents who led the march but disputed that the committee represented the broader Newcastle West community.
“They are representing Ward 5 specifically, with a few individuals from other wards,” he said. “It creates a misperception when they claim to speak on behalf of all residents.”
He said the municipality had met with various civic groups, including AfriForum, the Newcastle Council, and the Newcastle Ratepayers’ Association, and remained open to engaging with any organised structure.
Rates and tariffs follow national regulations
Responding to concerns about high rates, Mncineka said the municipality’s tariffs were in line with national legislation and regulatory guidance. “It is not correct that the rates are high,” he said, adding that the municipality reduced residential rates in the previous financial year. “This was confirmed by Cogta (Co-operative Governance and Traditional Affairs) when we met with them.”
He said electricity tariffs are set by the National Energy Regulator of South Africa (Nersa), and municipalities are required to adhere to the approved structure. On water, sewer, and waste charges, he said tariffs follow national treasury guidelines, aside from a 1% addition on water this year that would be ring-fenced for leak repairs.
Mncineka added that lowering rates midway through the financial year, as demanded by the protestors, is legally impossible and would result in an unfunded budget.
Property valuations a key factor
He said many complaints stemmed from misunderstandings about property valuation, which determines the rates charged.
“There is a science behind valuation,” he said. “You cannot expect a property valued at R1 million to be billed the same as one valued at R4 million. Location, structure, upkeep, and improvements all affect the value.”
He added that some of the march organisers were multi-property owners operating student accommodation, a factor he said contributes to higher consumption and infrastructure strain.
Meter accuracy an area for action
While firmly defending the tariff structure, Mncineka acknowledged concerns about inconsistent meter readings.
“I cannot dispute that there is that possibility,” he said. “We must ensure meters are working at all times and calibrate them. That is an area we are going to be improving.”
He said the municipality had already responded to individual cases where residents reported faults in supply lines.
Engagement will continue within the law
Mncineka stressed that the municipality would not take decisions outside the law or make concessions that compromise service delivery. “South Africa is a constitutional democracy, and the rule of law is supreme,” he said. “We cannot break the law to appease a particular group.”
He said the municipality remains willing to engage but said negotiations must be based on accurate information and mutual understanding of legal limits.
However Hutten Heights resident Thenjiwe Mnguni said many households feel they are being unfairly charged for services that are not delivered consistently.
“Our municipality is overcharging the residents. We compared our bills with places like Richards Bay and Umhlanga and found they are paying far less than Newcastle,” she said.
Mnguni said the condition of local infrastructure does not match the rates being charged. “The services are not up to standard. Grass cutting used to be done regularly, but that no longer happens. The roads are full of potholes and street lights remain unfixed even when we report them.”