TZANEEN – Residents and businesses in Tzaneen are likely to pay about 9% more for electricity from July 1, following proposals by the Greater Tzaneen Municipality (GTM) for the 2026/27 financial year.

The proposed increase was presented during a series of public consultation meetings held by the municipality.

During these sessions, municipal officials outlined the proposed tariff adjustments and allowed residents to ask questions, raise concerns, and submit inputs before a final decision is made.

According to the GTM, the proposed tariffs are guided by the National Energy Regulator of South Africa (Nersa), which provides pricing guidelines to Eskom and municipalities nationwide.

Business chamber warns of job losses and closures

However, the proposed increase has been met with strong opposition from residents and the business sector, who argue that rising electricity costs, combined with high fuel and food prices, are placing unbearable pressure on households.

Many warned that low-income residents would be the hardest hit.

The Tzaneen Business Chamber of Commerce also voiced serious concerns, stating that the increase would have an immediate and measurable financial impact on both businesses and residents.

In a statement, the chamber said businesses in Greater Tzaneen are already under severe financial strain due to rising fuel costs, escalating electricity tariffs, high interest rates, and deteriorating infrastructure.

It added that the electricity supply has become increasingly unreliable, further compounding the problem.

The chamber warned that the combination of higher costs and poor service delivery could result in reduced productivity, increased operational risks, business closures, job losses, and declining investment.

“Tariff increases exceeding 9% are not affordable,” said chamber president Flippie Coertzer. “The proposal will negatively affect businesses and employment. Tariff increases cannot be justified without reliable infrastructure and a consistent electricity supply. Structural issues such as fixed charges and tariff changes must be reconsidered, as the long-term economic consequences will be severe if nothing changes.”

Farmers fear impact as Agri Letaba raises alarm

Concerns were also raised about the impact of the increase on agriculture. Agri Letaba said the proposed hike would significantly affect farmers and the broader agricultural sector.

Meanwhile, Natalie Moss, a local government candidate for the VF Plus, said the proposed increase was unaffordable for both residents and businesses.

“People are already struggling with the rising cost of living, and this increase will make things even harder,” Moss said. “It will put more pressure on households and make it difficult for local businesses to grow.”

Moss also expressed disappointment at the low turnout at public meetings, noting that only a small number of residents attended.

She said this often leaves a handful of people to make input on decisions that affect the entire community, and urged residents to participate more actively in municipal engagements.

Muni says final decision will consider public input

Responding to the concerns, Neville Ndlala, GTM’s communication and marketing manager, said an electricity tariff increase is highly likely to be implemented in July.

However, he emphasised that the municipality would take into account the comments and suggestions raised by the community during the consultation process before making a final decision.