The DA has rejected proposed tariff increases for the 2026-’27 budget in the Matjhabeng Local Municipality, which exceed national guidelines by significant margins.
The ANC-led municipality has proposed electricity tariff increases of 23% against the National Energy Regulator of South Africa (Nersa) guideline of 9.01%, and water tariff increases of 25% against the Vaal Central Water (VCW) increase of 9.5%.
Property rates, refuse removal and sewerage tariffs would each increase by 7%.
The increases are set against a consumer price index of 3.4%, municipal unemployment of 36.7% affecting more than 150 000 adults, and negative economic growth of -1.45% in the area.
The municipality’s poverty rate exceeds 60%.
The DA mayoral candidate for Matjhabeng, Cllr Piet Botha, said the proposed increases would place additional financial pressure on households and businesses already experiencing economic difficulty.
“Residents cannot be expected to subsidise inefficiency, neglect and administrative failure,” Botha said.
The DA has raised concerns about the methodology used to justify the electricity increase, noting that the Cost of Supply Study was conducted in 10 of the municipality’s 36 wards.
The municipality is experiencing water losses of approximately 56% through leaks and infrastructure deterioration, translating to an estimated R360 million annually.
The DA argues that residents should not bear the cost of these losses through increased tariffs.
During council deliberations, the Matjhabeng Business Forum warned of potential widespread resistance to the increases, including non-payment.
The DA has written to Nersa, requesting a rejection of the 23% electricity increase on grounds that it lacks justification and has procedural shortcomings. Residents have until 20 May to submit their written objections to vuyo.adonis@matjhabeng.co.za or Thabo.panyani@matjhabeng.co.za.
The DA stated it supports inflation-linked tariff adjustments rather than the proposed increases.
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