Business Report

eThekwini residents to face significant tariff increases for water, electricity, and waste services

'COST RECOVERY'

ZAINUL DAWOOD|Published

eThekwini residents are facing increases in water, electricity, sewage and refuse removal during the municipality’s 2026/2027 financial year. In 2025, residents protested against the hikes.

Image: Zainul Dawood

THE eThekwini municipality plans to implement significant tariff increases for water, electricity, sewage, and refuse removal in the upcoming financial year (2027/2027), aiming to improve cost recovery and ensure financial sustainability.

The municipality stated in its report before the Executive Committee on Tuesday that electricity tariffs depended on the approval of the Eskom Retail Tariff and Structure Adjustment (ERTSA) application, due in March 2026, IOL reported.

Eskom has submitted an average municipal increase of 9%, which is currently under consultation. Based on the submissions, the municipality has proposed a 10.5% increase.

Concerning potable water and sundry water tariffs, the municipality proposes a 15% increase for domestic and non-domestic consumers. The Sanitation Directorate proposes a 13% domestic tariff increase and a 14% non-domestic tariff increase for sewage disposal user charges and sundry tariffs.

Also, the proposed domestic refuse removal user charge increase is 13%. The municipality stated that this increase represents a measured step towards improved cost recovery and alignment with national treasury trading services reform requirements. 

The report stated that effective and sustainable waste management under the National Waste Management Strategy’s (NWMS) remains a key government priority. 

“A review of the five-year financial trend indicates that the actual cost of delivering waste management services within the municipality has continued to escalate, while tariff increases have not kept pace with the rising cost of service provision. The increase represents a necessary and measured intervention aimed at improving cost recovery and ensuring long-term financial sustainability," stated the report. 

The municipality stated that providing waste management services is capital-intensive and requires investment in infrastructure such as landfill sites and transfer stations. It also cited escalating costs of fleet maintenance, fuel, and general infrastructure upkeep. 

The tariff increase proposal will go to a full council meeting on March 31. Thereafter, the municipality will allow the public to comment on these increases. 

Analyst Professor Andre Duvenhage said that most municipalities, including eThekwini, face major challenges, including service delivery, financial issues, corruption, and allegations of corruption. He said the eThekwini municipality is facing financial challenges and is not delivering the required output where it is needed.

He said Eskom's proposed increase was higher than the inflation rate. 

“I think expecting Eskom to increase the rate by 9%, eThekwini could put a huge increase on top of this. This could be dangerous because it is an election year where people will vote based on bread and butter issues," he said. 

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