The hikes come into effect following the start of the 2024/25 financial year last week. Among the most notable changes is a 12.7% electricity tariff increase approved by the National Energy Regulator of SA, alongside a new pricing structure for Eskom.

The Organisation Undoing Tax Abuse (OUTA) has raised concerns about the impact of the increases, warning that households are being hit hard by costs that continue to climb well above the inflation rate.

OUTA Chief Executive Officer Wayne Duvenage says the trend of above-inflation increases in municipal tariffs has been building for years and is now taking a serious toll on property owners.

“If you go back 15 years and look at the City of Johannesburg, for example, had tariff increases stayed in line with inflation or been lower, we wouldn’t be in this position,” said Duvenage. “Instead, we’re now paying 30% to 40%more than we should be.”

He noted that the problem is not limited to Johannesburg but is being felt across the country. “Fifteen years ago, services were being delivered, potholes were fixed, water leaks addressed, streetlights worked. Now, people are paying more and getting less,” he said.

The latest tariff hikes have reignited public debate over the management of municipal finances and the sustainability of escalating service charges. OUTA has called for greater transparency and accountability in how local governments set their tariffs and deliver basic services.

--ChannelAfrica--