Matjhabeng – A water hike of 25% and an electricity hike of 11% is what now faces the already harried residents of Matjhabeng after the 2026-’27 municipal budget was pushed through by the ruling party.

The official opposition party in Matjhabeng, the DA, argues that these increases place an unfair financial burden on residents and businesses while failing to address deteriorating service delivery.

The budget was approved by the Matjhabeng Municipal Council on Thursday 28 May and includes significant tariff increases across a range of municipal services.

In addition to the steep water and electricity hikes, property rates, refuse removal, sewerage and general municipal tariffs will increase by 7%.

The municipality has also introduced a new minimum monthly water charge of R550 for businesses and proposed a fire services levy, a move criticised by the DA given ongoing concerns about the municipality’s emergency response capacity.

The DA’s mayoral candidate and councillor Piet Botha said residents were already facing severe economic challenges and should not be expected to shoulder increases that exceed inflation while service delivery continues to decline.

“Households are battling rising living costs, businesses are struggling to remain viable, and service delivery continues to deteriorate.

“Yet, residents are now expected to fund tariff increases well above inflation,” Botha said.

The party warned that the new minimum water charge for businesses could have serious consequences for small and medium-sized enterprises, many of which are already grappling with unreliable municipal services and difficult economic conditions.

According to the DA, the additional costs could discourage investment, threaten jobs and further weaken local economic growth in a municipality already facing one of the highest unemployment rates in the Free State.

Concerns were also raised about the municipality’s revenue projections.

The DA noted that Matjhabeng is forecasting collection rates significantly higher than current performance levels, despite achieving an average collection rate of only 58,8% during the current financial year.

The Matjhabeng Business Forum, which represents approximately 450 businesses, has also rejected the proposed tariff increases.

The forum has warned that continued unaffordable increases could lead to growing resistance among ratepayers.

As an alternative, the DA proposed limiting water tariff increases to a maximum of 4% until water losses and leakages are brought under control.

The party further called for inflation-related increases on property rates, refuse removal, sewerage and other municipal tariffs.

The DA also argued that the proposed R550 minimum business water charge should be scrapped and that any fire services levy should be funded through existing municipal revenue until residents can be assured of a functional emergency service.

The party criticised the Economic Freedom Fighters (EFF) for supporting the budget, despite what it described as the negative impact on unemployed residents, pensioners, struggling households and local businesses.

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