Tariff hikes coming for Joburg households in 2025

Johannesburg residents may soon face higher utility bills as the City proposes tariff increases for the 2025/2026 financial year.

On Thursday (27 March), the City of Johannesburg tabled their proposed municipal tariff increases for the next three years.  

The tariffs form part of the municipality’s Integrated Development Plan (IDP) for the 2025/26 financial year.

The City tabled a total budget of R87.6 billion for Johannesburg, allocating just over R80 billion for the operating budget and R7 billion for capital expenditure.

The entities with the largest budgets include Johannesburg Water, which will receive R5.32 billion over the next three years, and City Power, which will receive R5.26 billion over the same period.

The budget includes proposed tariffs that residents and businesses must pay due to adjustments made by national utilities such as Eskom and Rand Water.

Additionally, changes to property rates and refuse removal fees have been implemented to meet budget requirements.

According to the proposals, households will see property rates increase by 4.6% for this financial year and 4.6% and 4.5% in the subsequent years.

However, the proposed electricity tariff increase will be fractionally less than the amount granted to Eskom by the National Energy Regulator of South Africa—12.41% this year, followed by 5.36% and 6.19%.

Water and sanitation are expected to increase by 13.9% this year, followed by a further increase of 6.6% over the next two years. Refuse removal is projected to rise by 6.6% in the next three financial years.

A summary of the proposed tariff hikes for 2025 is as follows:

• Property rates: +4.6%
• Electricity: +12.41%
• Water and sanitation: +13.9%
• Refuse: +6.6%

The City noted that the proposed fees will not be finalised until the City has completed its 17-date public participation schedule, which runs from 29 March until 10 May.

Speaking to Newzroom Afrika, Chief Financial Officer Tebogo Moraka explained that the engagement process is essential for explaining how the tariffs were determined and gathering feedback.

“In the past, through engagements, the City of Johannesburg has reduced some tariffs and changed some categories, especially on property rates,” he said

Big businesses and their chambers of commerce often provide input on how increases should be structured to ensure business continuity. Similarly, residents provide input on how they want their tariffs to be structured.

Why you’re paying more

Regarding electricity and water tariffs, Moraka said that the City follows tariffs approved by regulatory bodies such as Nersa (for Eskom) and Rand Water. “Those tariffs are above inflation,” he noted.

“The rest of our tariffs are within inflation, except for solid waste management, which we are trying to make more cost-reflective.”

“Pick-it-Up has been operating at a loss for several years due to subsidies, and we need to address this to ensure the sustainability of waste collection services.”

On the issue of property rates, Moraka acknowledged residents’ concerns about increasing rates despite declining property values.

“We conduct a General Valuation Roll (GV) every four years, as mandated by the Municipal Property Rates Act,” he explained.

“While some residents question why property tax is rising when their property value is decreasing, taxation is essential for maintaining service delivery.”

“That’s why we have limited the increase to CPI levels. Some metros have raised rates by 8%, but we decided to stick to CPI and engage with the community to find a balanced approach.”

He also acknowledged challenges such as ageing infrastructure, which affects service delivery, but added that the City has started engagements with development funding institutions.

“These include the Development Bank of South Africa and international partners to secure funding for infrastructure upgrades.”

Regarding the proposed water and electricity tariff hikes, Moraka noted that the City has not passed on the full increase imposed by its suppliers.

“Eskom is increasing its tariff by 12.74% from 1 April, but we are proposing an increase of 12.41% for residents, meaning we are absorbing some of the costs,” he said.

“Similarly, Rand Water has increased its tariff by 15.3%, but we are only increasing by 13.9%. We are finding savings within the City’s budget and cutting unnecessary costs to reduce the burden on residents.”

Moraka emphasised that the City is not seeking to overburden residents but rather ensure financial sustainability while maintaining service delivery.

“We are trying to cushion customers by improving efficiency, addressing illegal electricity and water connections, and managing expenses such as salaries and bulk purchases.”

“These strategies help us avoid passing the full cost of supplier tariff increases onto residents. The City of Johannesburg remains committed to being financially viable while providing essential services to its residents.”