The South African Quarterly Financial Statistics of Municipalities (QFSM) has reported that electricity remains the main source of income for a number of municipalities.

Of the municipal total income for the quarter ending June 2014 amounting to 68.4 billion rand, the sale of electricity contributed approximately 29.5 per cent (20.2 billion rand).

Other areas contributing to municipal income

“Other contributors to municipal income were grants and subsidies contributing about 14.9 billion rand, property rates accounted for 11.4 billion rand,” read the QFSM report. The report also added that the sale of water contributing about 6.7 billion rand while sewerage and sanitation contributed 2.7 billion rand.

According to the report, the electricity sales were 1.3 billion rand higher than the previous quarter. This is possibly due to the increase in tariffs and more households being connected to the grid.

“The 20.2 billion rand from sales of electricity was 1.3 billion rand higher than the amount received in the previous quarter of 18.9 billion rand, an increase of 6.9 per cent.”

Gauteng province contributed 8.5 billion towards the total amount followed by KwaZulu-Natal with 3.6 billion rand and Western Cape contributed 3.4 billion rand. Municipalities received 14.9 billion rand in the form of grants and subsidies from provincial and national government, a decrease of 3.4 billion rand from 18.3 billion recorded in the previous quarter.

“The largest portion of the 14.9 billion rand went to municipalities in Gauteng (5.5 billion rand) followed by those in KwaZulu-Natal (2.7 billion rand) and Western Cape (1.8 billion rand).

Employee related costs increase by 4.3 per cent

The report also noted the employee related costs having amounted to 17 billion rand. This was an increase of 4.3 per cent from the 16.3 billion recorded in the previous quarter. According to the QFSM report, municipalities in Gauteng contributed the most to employee costs followed by KwaZulu-Natal.