The Msunduzi municipality’s proposed tariff hike for the 2026/2027 financial year came under the spotlight at a Finance Portfolio Committee meeting on Tuesday.
The committee report stated that municipalities can generate sufficient revenue to fully cover costs, sustainably deliver services to customers and invest in infrastructure that promotes local economic development through effective tariff setting and design.
Water, sanitation, electricity and solid waste removal ensure that cost-effective tariffs are set as these are the primary revenue drivers of a municipality. Some of the proposed tariff increases are:
- Electricity: 9.26%
- Infrastructure Services -water: 13%
- Sanitation: 13%
The Msunduzi Council still needs to approve the draft tariffs for the 2026/2027 financial year prior to public participation. The proposed dates for public participation are February 10, 11 and 12, 2026, at the Pietermaritzburg City Hall.
Councillor Ross Strachan – Democratic Alliance (DA) Msunduzi caucus leader rejected the proposed draft tariffs that the municipality intends to take out for public participation as part of its mid-year review.
“We made it clear that it is too early and inappropriate to consult the public on tariff increases before the municipality has completed a Cost of Supply Study that includes alternatives,” he said.
Strachan explained that these alternatives could include an increased customer base and a bigger indigent book. He said that this could help ease the burden on an already overwhelmed population, which pays extra for services that others use and do not pay for.
Strachan proposed that no draft tariffs be released for public participation until such a study is conducted with immediate effect, specifically focusing on:
- Bulk service losses
- Electricity theft and illegal connections
- Historically ignored revenue leakage.
“The reality is unavoidable, Msunduzi is attempting to shift the cost of its own failure to address losses, theft, and mismanagement onto paying residents, instead of fixing the system,” he said.
This approach, Strachan said, places further pressure on households already struggling with rising living costs and on local businesses, as the ratepayer base shrinks and becomes more overburdened.
“There is significant potential revenue within the existing system that can be recovered if there is political will and competent management. Until this revenue is identified and secured, tariff increases cannot be justified,” Strachan added.
The Msunduzi Association of Residents, Ratepayers and Civics (MARCC) added their voice to the increases, stating that the municipality increases the tariffs but doesn’t link the increases with service delivery, which is very poor and at times not available.
Anthony Waldhausen, CEO of MARRC stated that the municipality intends to increase refuse collection, but at most times is unable to collect, or there are major delays in refuse collection.
“Recently, the Gauteng High Court passed a judgment where four municipalities, which include Msunduzi municipality, needed to recalculate their electricity tariff to the National Energy Regulator of South Africa for 2025/2026,” Waldhausen said.
He called for a moratorium on any tariff increases until the municipality gets its act together and focuses on widening the revenue collection for the municipality.
“The municipality may increase the electricity tariff to double figures which residents can afford. Ratepayers will strongly oppose any tariff increases, and residents need to mobilise to stop these increases,” he stated.
