Looming above-inflation energy increases in South Africa’s metros may leave many pressured middle-class households struggling to afford electricity.
The hikes, which range from 6.6% to 10.5% across the country’s five biggest metro municipalities, may “sow the seeds of a rebellion”, warns economist Duma Gqubule, who says many families are already battling to make ends meet.
South Africa’s municipalities are set to implement tariff hikes in two months, with electricity accounting for the steepest increase on municipal bills.
Most municipal councils are expected to approve their 2026/27 budgets at council meetings at the end of May.
eThekwini has proposed the highest tariff increase at 10.5%, followed by Ekurhuleni at 9.01%. Tshwane has proposed an 8.8% increase, with Joburg and Cape Town proposing 8.6% and 6.6% respectively.
With inflation hovering around 3%, electricity prices appear set to rise at more than double the inflation rate.
Gqubule said South Africa had experienced tenfold increases in energy tariff over the past two decades.
“I look at electricity tariff increases in the long term, because since 2007 electricity prices have increased by about 1,000%, and I think we have now reached the breaking point in South Africa,” Gqubule said.
He said most households, including middle-class families, were already struggling to afford electricity and that any further increases would worsen living conditions.
“The inevitable conclusion is that the government will have to increase subsidies for households and businesses,” Gqubule said.
He added that government may also be forced to expand free basic electricity allocations to indigent households.
The National Energy Regulator of South Africa (Nersa) has approved an 8.76% increase for Eskom, which supplies electricity to municipalities as well as direct customers.
It’s estimated that more than 10-million South Africans are already experiencing energy poverty, with households going for days each month without electricity.
“Most people already wonder what else they can cut. We are at breaking point. These increases may sow the seeds of a rebellion in the country,” Gqubule said.
eThekwini
eThekwini spokesperson Mandla Nsele said the metro’s proposed operating budget for electricity in 2026/27 was R23.8bn, of which R20.1bn would go towards bulk purchases from Eskom and R1.4bn towards repairs and maintenance.
The metro’s proposed capital budget for electricity in 2026/27 is R746m.
“This will fund the ongoing extension and reinforcement of existing networks, as well as new substations that are being commissioned,” Nsele said.
Ekurhuleni
Ekurhuleni has already approved an increase of 9.01%, which will take effect in July, spokesperson Zweli Dlamini said.
“The 2026/27 electricity tariffs were approved by council on April 26 after public participation sessions across the city and online,” Dlamini said.
Johannesburg
The City of Joburg’s energy utility, City Power, which requires about R20bn to purchase bulk electricity, has proposed an 8.63% increase that is out for public comment until tomorrow.
The city has a revenue collection rate of 81%. Of the R1.92bn billed for electricity in April, the city collected R1.56bn, according to City Power.
Spokesperson Isaac Mangena said the proposed increase was driven largely by the cost of bulk electricity purchases, which “remain the single biggest contributor to City Power’s operating costs”.
Mangena said operational and maintenance costs had also contributed to the above-inflation increases.
“The proposed tariff adjustments are further informed by the Nersa tariff-setting methodology and findings from City Power’s cost-of-supply study,” Mangena said.
He said City Power was also “taking into account the socio-economic realities facing our customers, acknowledging the economic pressures they are experiencing, including post-Covid challenges and other financial pressures, so that they can be cushioned”.
Mangena said the ongoing public participation process would inform the final tariff increases to be tabled before council at the end of the month.
Cape Town
Cape Town, where revenue collection stands at 98%, has proposed an increase of 6.6%,
Mayoral committee member for finance Siseko Mbandezi said the proposed increase was “2.34 percentage points lower than the Eskom increase to municipalities”.
“Importantly, the biggest input cost driver and impact on the tariff is the bulk electricity costs that the city must [pay] Eskom. Some 70% of the tariff income is for Eskom bulk electricity,” Mbandezi said.
The Tshwane council will have its budget meeting on Thursday.
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