Mayor Morero faces backlash over proposed tariff hikes as financial strain deepens in Joburg

3 Apr 2025

Civil society groups and political parties have criticised the City’s proposed tariff hikes, condemning them as unjustifiable and disproportionately harmful to the vulnerable.

The City of Johannesburg’s proposed tariff increases for 2025/26 have been criticised as unaffordable for the majority of residents, many of whom are suffering from the cost-of-living crisis.

Mayor Dada Morero last week described the days leading up to the tariff announcement as featuring “some of the most difficult decisions regarding the City’s budget since my tenure as a member of the executive began”.

“Households are already under immense financial strain. I am more than alive to the fact that every rand matters, and we must do everything possible to alleviate financial pressures on our residents,” said Morero.

Despite the mayor saying the City had endeavored to lessen the financial strain on households by reducing some of the proposed tariffs, critics maintain that the increases are unjustified.

The proposed tariff increases for 2025/26 are:

A 13.9% increase in both water and sanitation tariffs.

Electricity increases of 12.74%.

A 6.6% increase for refuse collection.

A property rates increase of 4.6%.

Morero said the City had made some concessions on its original tariff plans, including keeping the rebate threshold at R300,000 rather than the proposed R200,000; lowering the property rates increase from 5.6% to 4.6%; and keeping the prepaid electricity meter charge at R200 rather than R270.

The mayor said the City estimated it would lose R1-billion in revenue due to revisions to the proposed tariffs.

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‘Not justified’

“The electricity tariffs increase is not justified at all because clearly the ANC government is against the working class,” said Mduduzi Makhubu, the interim chairperson of the Soweto Electricity Committee.

“Food prices will also be beyond affordable, and corporates fail to increase workers’ salaries. If companies crumble under the pressure, this may even lead to job losses,” he added.

WaterCAN, an initiative under the Organisation Undoing Tax Abuse (Outa) that advocates for equitable access to water, had written to Water and Sanitation Minister Pemmy Majodina to complain about the high cost of water increases.

“WaterCAN has requested through the minister and local municipalities that water revenue be ringfenced for the maintenance of water infrastructure to lessen non-revenue water and leaks in municipalities,” it said.

“Rand Water acknowledges in their tariff increase application that the financial position of their municipal customers continues to deteriorate, with many of their municipal customers increasing their debt to the water board. A further increase will escalate the debt owed to Rand Water further, affecting delivery and quality, which would affect the most marginalised communities first,” WaterCAN said.

“Defaulting customers and lowering revenue income from non-payment is affecting municipalities, and an increase that is above inflation would increase revenue instability in councils,” it added.

Morero pointed out that the City was limited by recommendations made by bulk water supplier Rand Water, which proposed a 15.8% water tariff increase, and Eskom, which was implementing a 12.74% price increase. The City’s proposed tariffs were below both recommendations.

“WaterCAN objects to the effective bailout of non-performing municipalities by overtaxed residents,” said WaterCAN in its letter to Majodina.

“We request that the Department of Water and Sanitation take into account the financial situation of both municipal customers and water consumers, while following the example of Nersa on Eskom to cap the bulk supply tariff increase from Rand Water,” WaterCAN’s letter read.

A blow to the poor

Julius Kleynhans, from the Johannesburg Crisis Alliance, said: “While the City is performing poorly and not cutting its own cost of services and curbing a wastage of funds, it is very difficult to justify any increases.

“For low-income households, the electricity tariff hike poses a significant financial burden. While the City offers free basic electricity to registered indigent households, many vulnerable residents may not be registered and, therefore, will not benefit from these subsidies,” Kleynhans said.

“Additionally, the introduction of a R200 fixed service charge on prepaid electricity in 2024 disproportionately affected low-income families who rely on prepaid meters to manage their consumption. Although the City has decided not to increase this charge in 2025, it remains a substantial expense for these households,” Kleynhans said.

Read more: Impoverished Joburgers buckle under new monthly R200 prepaid meter fixed electricity surcharge

“Buying water from Rand Water will be more expensive as bulk water sales need to also cover costs owed to Lesotho. Cost reflective tariffs structures and the ringfencing of water and sanitation revenue must be prioritised though as it feels like people pay more every year, yet the funds are not allocated to the service,” Kleynhans said.

Read more: Joburg Water’s turnaround strategy: Can it secure the R3bn needed to address the crisis?

He said it was very important that citizens raise their voices in the Integrated Development Plan and budget cycle. The public could comment on the tariff proposal and plan until 10 May 2025.

“Balancing the need for municipal revenue with the economic realities faced by residents is essential to ensure that tariff policies do not exacerbate financial hardships, particularly for the most vulnerable populations,” Kleynhans said.

‘Deeper financial distress’

The DA called the tariff increases unjustified, especially in light of the frequent water outages, load shedding and unaffordable bills based on inaccurate readings.

“While the draft seems to give relief for pensioners aged 60-69 and is welcomed by the DA, the City has no clear plan to ensure that the indigent register is updated, to ensure that residents who should be on the indigent register get the support from the City they need,” the party said.

Under the city’s Expanded Social Package, residents who qualify for the indigent register who earn under R7,503.01 are entitled to some free electricity, water and sanitation services.

“The Democratic Alliance firmly rejects the draft tariff increases proposed by the ANC/EFF/PA/ActionSA coalition government in Johannesburg. These above-inflation hikes will plunge residents deeper into financial distress while service delivery continues to deteriorate.

“The DA calls on every Joburger to submit objections to these proposed tariffs. We will not allow this coalition to balance its books on the backs of struggling households,” said the party’s finance spokesperson in Johannesburg, Chris Santana.

ActionSA Johannesburg Chief Whip Steven Nkonyeni said: “Considering the proposed 1% VAT hike over two years by the national government as well as the unjust R230 electricity surcharge imposed on the Joburg residents, these proposed hikes cannot be read in isolation as they impact directly on residents’ disposable income.”

The party has a working relationship with the ANC-led coalition and holds the Speaker position in the city council.

“Whilst ActionSA strongly supports efforts to improve revenue collection by the City, this should not be done to the detriment of residents,” Nkonyeni said. DM

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‘Not justified’

A blow to the poor

‘Deeper financial distress’