There has been mixed reaction from eThekwini Municipality councillors on whether they would approve tariff increases over 10% as Mayor Cyril Xaba gets ready to present the city's draft budget.
The draft budget, which is set to be tabled by latest March 31, will then be open for public consultation.
This week Eskom welcomed the decision by the National Energy Regulator of South Africa (NERSA) to approve the Financial Year (FY) 2026 Eskom tariffs adjusted with the 2025/26 tariff increase and changes to the tariff structures.
The tariffs for Eskom direct customers will increase by 12.74% effective on April 1 and tariffs for municipal bulk purchases will increase by 11.32% effective on July 1. Last year the municipality increased electricity tariffs by 12.72%.
Andre Beetge, DA eThekwini exco member said they will fight against any increase that is over 10%.
"We will fight any increase if it's not in line and exceeds the cost of living. We will go against it. The municipality will have to curb their expenditure. The debtors book currently is at R36 billion. Residents cannot afford any increases. You are bleeding them dry.
"The city must go back to basics and remove the luxuries. These compounded increases year after year have put a strain on the city's residents. Everyone should start contributing to the fiscal, even if it is a small percentage. The city needs to create a culture of paying for services, even if it was subsidised, but there has to be a contribution from residents to secure ownership and participation into the system. You cannot continue to burden those who pay, which is less than 10%. The city would be heading for disaster," said Beetge.
Zwakele Mncwango, ActionSA provincial chairperson, said they were not prepared to support any increase that was above the inflation rate.
"We will not support anything above 5%. People are swimming in poverty, even the working class. South Africans cannot afford to save. The tariff increase will kill consumers who work to buy food and pay for travel costs to get to work.
"The government is doing nothing about those people stealing electricity all over eThekwini through illegal connections. Yet the responsible ratepayers are forced to pay their bills and for those stealing electricity. Residents are being punished for being loyal," he said.
Mncwango said eThekwini residents were already failing to pay the city's bills.
Themba Mvubu, an EFF exco member, said the national government has failed the people.
"I don't support any increase that seeks to put strain on the people. Water and electricity are services the city sells to generate revenue. The city is the middle man who has to make minimal profit. Unfortunately we are in a situation where people are already struggling with high unemployment and natural disasters like the floods.
"The city should explore other avenues. We would have to be convinced why the need for an increase, are there no alternatives? But we also don't want to collapse the city," said Mvumbu.
Nkosenhle Madlala, ANC exco caucus whip said the issue of tariff increases was always a sensitive one, particularly in the current economic climate, where many residents were struggling with the rising cost of living and service delivery challenges.
"As the ANC exco caucus, we remain steadfast in our commitment to protect households from undue financial burdens while ensuring that the municipality remains financially stable and is able to deliver quality services.
"The bulk tariff hikes imposed by suppliers such as Eskom and uMngeni-uThukela Water significantly impact our ability as a municipality to set fair and sustainable rates. We are acutely aware that these increases place additional strain on our communities, and this is why we have taken a firm stand against them," said Madlala.
He said as an ANC-led municipality, they have rejected the proposed 13.5% bulk water tariff increase from uMngeni-uThukela Water and instead proposed a more reasonable 6.1% increase—one that balances financial sustainability with affordability.
He added that to safeguard residents from excessive costs, they have formally lodged a dispute with the Department of Water and Sanitation through SALGA, as they strongly believe that the proposed hike is unjustifiable and would disproportionately affect working-class and indigent households.
"Similarly, Eskom’s NERSA-approved tariff increases, 12.74% for direct customers and 11.32% for municipalities, further exacerbate financial pressures, impacting our service costs and the overall affordability of electricity for residents. These external cost drivers shape the city’s draft budget, which will soon be open for public consultation.
"As the ANC exco caucus, our stance is clear, any tariff adjustment must strike a fair balance between financial sustainability and affordability. We cannot allow excessive increases that make it harder for our people to afford basic services. This is why the public participation process is so critical, it ensures that the voices of residents are heard as we shape a budget that is just, equitable, and responsive to their needs," said Madlala.
IFP councillor Mdu Nkosi said the municipality buys electricity from Eskom and water from uMngeni-uThukela Water, therefore, electricity, water and sanitation tariffs were directly impacted by the tariff increases imposed by these two entities.
"I don't think it would be financially sustainable for the municipality to propose tariffs lower than those proposed by the two entities as the municipality is also busy rehabilitating its infrastructure in line with approved strategies.
"However, we will await for the budget to be tabled at the next council meeting so that we can apply ourselves," said Nkosi.