Here’s an in‑depth article on the 2025 tariff increases affecting homeowners across South Africa:
1. Overview: What’s Happened?
On 1 July 2025, most municipalities implemented new tariff hikes spanning electricity, water, sanitation, refuse removal, and property rates. These increases are driven by:
- Eskom’s national electricity hike of 12.74%, effective 1 April (direct customers) and 11.32% from 1 July for bulk municipal supply
- Local municipal adjustments reflecting rising service delivery costs, infrastructure backlogs, and addressing illegal practices like electricity theft
2. Electricity Costs
- Eskom: A ~12.7% hike for direct customers (from 1 Apr 2025); municipalities pay 11.32% from 1 July.
- Metros:
- Johannesburg: +12.41%, absorbing some costs
- eThekwini (Durban): +12.72%
- Cape Town: Only +7.2%, due to local renewable energy and tariff structure changes
Bulk increases also include new structures: fixed daily service charges alongside per-kWh rates, which can unexpectedly raise bills, especially for low-usage households
3. Water & Sanitation
- Average across major metros: Johannesburg +13.9%; Durban +12.9%; Tshwane +13%; Cape Town lower at +4.5%
- Regional specifics:
- Msunduzi: +15% water tariffs, +13.5% sanitation.
- Mogale City: +15.3% (aligned with Rand Water)
- Stellenbosch: Only +6% water, with free basic services for qualifying indigent households
Rising costs reflect infrastructure investment needs, drought resilience, and consumption-linked charging principles.
4. Sanitation & Refuse Removal
From about +6% to 15%, depending on municipality:
- Msunduzi: Refuse +7%
- eThekwini: +9.9% refuse, +13% sanitation Johannesburg: refuse +6.6% Mogale City: sanitation +15.3%, refuse +4.4%
- Stellenbosch: Indigent users receive free sanitation and waste removal
5. Property Rates
- Johannesburg: +4.6%
- Cape Town: +8%
- eThekwini: +6.5%
- Msunduzi: +2%
- Mogale City: Rates roll increased 29.9%, but tariffs frozen for 2025–26, with rebates.
In Stellenbosch, the Rates Policy grants up to R350k exemption for indigent households
6. Responses from Communities
- Strong pushback in Durban and Joburg: Civic bodies (ERPM, JPOMA) filed formal objections citing affordability, service failures, lack of transparency, and inequity
- Cape Town civic associations criticised sharply rising fixed charges tied to property values, arguing they unfairly burden all households regardless of usage
- DA-led municipal mayors have opposed NERSA’s steep proposed increases, citing risk to poorer households
7. Legal & Civic Pushback
Legal grounds exist to challenge tariff increases if municipalities fail to provide required cost-of-supply studies or proper public consultation under the Municipal Systems Act and Electricity Regulation Act.
Civic groups are calling for moratoriums on hikes, greater transparency, accountability, and phased implementation.
8. What Homeowners Should Do
- Check your municipal bill for what’s changed (use city websites or notices).
- Participate in public consultation processes—many budgets allowed public feedback before May.
- Request documentation (cost-of-supply studies, meeting records) under PAIA.
- Lodge appeals within statutory timeframes (often 21 days) with your municipal manager.
- Join collective legal actions via AfriForum, SERI, or civic associations—class actions are more effective.
- Engage your councillors and attend ward meetings to apply pressure for accountability.
9. Policy Outlook & Longer-Term Trends
- Tariff structures are shifting towards inclining block tariffs, fixed service charges, and property-value-linked fees, aimed at fairness but with mixed impact.
- Municipal efforts in Cape Town and Stellenbosch to deploy renewables and insulate low-income users show a strategic buffer against Eskom's national hikes
- But many municipalities face infrastructure deficits, illegal connections, and ageing networks, forcing them to raise charges just to maintain basic services.
Bottom Line
South Africa’s 2025/26 tariff hikes send a clear signal: municipalities are under pressure to cover rising costs amid ageing infrastructure and Eskom increases. While some metros cushion the blow, others transfer much of the burden onto homeowners, raising concerns over affordability, fairness, and public accountability.
Homeowners should stay informed, engage in local consultations and, where necessary, challenge hikes through appeals, civic pressure, or legal routes to ensure that any increase is lawful, transparent, and proportionate.