Load-shedding puts increased pressure on operational budget at University of Pretoria

The University of Pretoria on Tuesday says load-shedding has placed increased pressure on its operational budget.

The institution said the cost of diesel to run generators at its campuses and residences was about R1.5m a day during stage 3 load-shedding, R2m a day on stage 4 and almost R3m during stage 6.

“Cumulatively, these challenges may result in delayed or even no refurbishments of university-owned residences owing to the lack of affordability. Year-on-year utility fees have increased by more than the inflation rate,” said UP spokesperson Rickus Delport.

A number of students from the institution had been sleeping outside the tertiary residences last week, demonstrating as a result of the National Student Financial Aid Scheme’s (NSFAS) decision to limit the student accommodation allowance.

NSFAS recently announced a decision to cap accommodation allowances for students living in private off-campus accredited accommodation to the value of R45,000.

Delport said the university is not in a financial position to fund the difference between the actual and capped amounts.

He said the university applied for an exemption on the cap in January, but this was rejected.

“This means NSFAS will continue to implement the cap on accommodation funding and in the process shift the financial burden onto students and the university, both already experiencing financial strain. Despite this, the university is committed to helping students and will continue to work with student leadership to find sustainable solutions within our available resources and without putting the university’s long-term sustainability at risk,” said Delport.

He said the university is disappointed by NSFAS’s rejection of the exemption application made by the university.

Delport said the extent of the funding required to fund the difference for the about 12,000 NSFAS students at UP will be about R240m.

“This will have multiple negative consequences, including the strong possibility of making it unaffordable for students to continue with their studies. For 2023, the minister of higher education proposed a lower-than-inflation increase (5.1%) in tuition fees. The CPI was 7.2% as at the end of December 2022. The less-than-inflationary increase worsens the financial burden placed on the university, thereby reducing its ability to fund the difference between the actual and capped accommodation rates,” Delport said.

He said the university is working with the SRC to find alternative accommodation and accredit more affordable accommodation. 

“NSFAS students who reside in UP residences will be allowed to continue their stay while the university, together with the students, explore workable and sustainable solutions to address the shortfall between the NSFAS allowance and cost of accommodation,” he said.

Delport said after an engagement between accredited accommodation providers last Friday, the university and the SRC, Respublica has agreed to make a concession and allow NSFAS student to check in and take up residence without any financial obligation of more than R45,000 (R4,500 per month).

“This is an interim solution until the end of March to assist all parties to find a workable solution. Rentals at these residences will be temporarily revised to accommodate as many NSFAS students as possible and Respublica has agreed to provide a combination of bed options for NSFAS students at the residences that include no top-ups, reduced top-ups as well as standard rates.”

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