Vryheid residents are fuming about consecutive increases in their municipal accounts, following last month’s hike and the introduction of a borehole levy.
Last month, households were surprised by higher bills that included the borehole levy, intended to support local water infrastructure projects. Many residents said they struggled to adjust their budgets for the unexpected expense.

This month, accounts increased again without explanation. Residents are assuming that the municipality applied ‘corrected electricity tariffs’ following an undercharge by the National Energy Regulator of South Africa (NERSA). The undercharge came from technical errors in calculating Eskom’s allowable revenue under the Sixth Multi-Year Price Determination (MYPD6). These errors affected depreciation and the Regulatory Asset Base in Eskom’s generation business, resulting in a shortfall of R14.5 billion. Eskom and NERSA later agreed on an additional R54 billion over the 2025/26 to 2027/28 period, to be phased in gradually over the next two financial years.
“First the borehole levy and now this electricity adjustment; It’s very hard for families to keep up,” said a local resident.

Another resident added that while he understands the need for cost recovery, the sequence of increases feels sudden and confusing. “We need clear explanations about each part of the bill,” he said.

The settlement will not affect the current financial year, but is expected to result in estimated increases of 3.4% in 2026/27 and 2.64% in 2027/28, on top of the annual tariffs already approved. Residents expressed concern that the phased-in increases, combined with the borehole levy, will continue to strain household budgets.

AfriForum, a civil rights organisation, has meanwhile declared a formal dispute under the provisions of Act 32 of 2000, Section 102. In a letter addressed to AbaQulusi Local Municipality, AfriForum Vryheid chairperson André van der Walt raised several objections:

The municipality’s communication to residents dated July 31, 2025, contained an incorrect date, stating that new tariffs were implemented on July 1, 2024, when in fact they took effect on July 1, 2025.
AfriForum has already launched a court application against NERSA, seeking to have all adjusted tariffs declared invalid, and null and void.

The municipality’s letter to residents failed to explain how adjusted tariffs were implemented or calculated, while still claiming the implementation was lawful. AfriForum argues that the question of lawfulness lies between NERSA and AfriForum and cannot simply be declared in correspondence to residents.
AfriForum further questions why the official letter of approval from NERSA has not been made available to the public.

According to AfriForum, some of the adjusted tariffs reflect increases exceeding 100% and even 200%, which they say is clear evidence of miscalculation.

The organisation also maintains that charges such as the ‘waste water consumption’ or borehole levy are unlawful and should be removed entirely from all accounts.

Van der Walt concluded the letter by calling on AbaQulusi to cancel all accounts issued on August 28, 2025, stating that ‘serious mistakes and miscalculations have been committed’.
“Transparency is essential,” said one resident. “We need to understand exactly what we are paying for and how these adjustments were calculated. Families are already struggling with consecutive increases.”

Community groups are urging AbaQulusi to provide a clear breakdown of the recent billing changes; explain how the borehole levy and revised electricity rates affect monthly accounts; and outline any support measures for residents facing financial difficulty. The management of AbaQulusi has not offered any kind of explanation to the community as yet.

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The news provided to you in this link comes to you from the editorial staff of the Vryheid Herald, a sold newspaper distributed in the Vryheid area.