Joburg Residents Face Higher Electricity, Water and Refuse Bills Under Proposed New Budget

• Johannesburg residents could soon face higher electricity, water and refuse bills under the city’s newly proposed R97 billion budget
• The City of Johannesburg says rising Eskom and Rand Water costs are forcing tariff increases despite growing complaints about poor service delivery
• The proposed tariff hikes have sparked backlash from residents and civic groups who say Joburg services continue declining while costs keep rising

Residents in Johannesburg could soon pay significantly more for basic services after the City of Johannesburg tabled a proposed R97 billion budget that includes increases to electricity, water, refuse removal and property rates. The budget for the 2026/27 financial year was presented by Deputy Mayor and MMC for Finance Loyiso Masuku on Wednesday.

The proposed budget is an increase from the previous R89 billion allocation and comes as the metro continues battling financial pressure, ageing infrastructure and growing criticism over service delivery failures. If approved by council, the increases will affect nearly six million residents across the city from July 2026.

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The city said the tariff hikes are mainly being driven by higher costs from bulk suppliers Eskom and Rand Water, as well as inflation and rising operational expenses. Electricity tariffs are expected to increase by an average of 9.01% after Eskom’s own bulk electricity price hike received approval earlier this year from the National Energy Regulator of South Africa (NERSA).

According to Moneyweb, residential customers will see a slightly lower effective increase of around 8.63%, while businesses and large electricity users may face additional surcharges to help sustain the power network. City Power, Johannesburg’s electricity entity, remains under pressure due to debt owed to Eskom and ongoing concerns about blackouts, infrastructure failures and electricity theft.

The city also plans to increase its monthly water demand management levy from just over R65 to more than R107 per household connection before VAT. Meanwhile, refuse removal services managed by Pikitup are expected to increase by 6.2%, while property rates could rise by 3.6%.

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The city admitted that its finances remain under severe strain due to non-payment, illegal electricity connections, water losses, billing problems and infrastructure decay. Johannesburg’s projected revenue collection rate has now been lowered from 88.6% to 86% due to poor payment trends.

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Masuku warned that every rand lost through theft, tampering or unpaid accounts affects the city’s ability to repair roads, water systems and electricity infrastructure. The proposed budget has already sparked criticism from civic organisations and residents frustrated by years of deteriorating services. The Joburg Crisis Alliance warned that approving the budget in its current form could worsen the city’s financial problems and potentially expose the metro to legal challenges.

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Source: Briefly News