Newcastle Municipality has announced a proposed 9% electricity tariff increase for the 2026/2027 financial year, following recent changes to the application process required by the National Energy Regulator of South Africa (NERSA).

Unlike previous years, municipalities are now required to conduct a public consultation process before submitting tariff applications to NERSA. The final application must be submitted by March 31.

Roadshow

As part of this process, the municipality held a public meeting at the Farmers Hall for wards 2 and 4 in Newcastle on March 23, as part of an ongoing community engagement roadshow. The roadshow is expected to conclude at KwaMathukuza on March 28.

If approved by NERSA, the new electricity tariff will come into effect on July 1.

Cost-of-supply

According to the municipality, a cost-of-supply study indicated that a 19.8% would be necessary to fully recover electricity costs.

However, council approved a lower 9% increase, citing concerns around affordability and the current socio-economic conditions faced by residents.

Residents have been urged to use electricity sparingly, particularly during winter months when consumption typically rises:

• Summer usage averages around 1000 units (+/- R4000 p/m)
• Winter usage (July-October) increases to 1500-2000 units (+/- R5800-R6500 p/m)

Community concerns raised

During the meeting, residents voiced several concerns, including:

• Streetlights reportedly staying on throughout the night
• High electricity usage among households and small businesses
• Concerns over municipal spending, including unused rental and alleged ‘ghost employees’
• Perceived unequal treatment of residents in Madadeni and Osizweni compared to other parts of Newcastle
• Prepaid electricity users receiving fewer units for the same price as previous years
• Questions about the availability of meter readers

Meeting conclusion

The meeting was marked by strong public engagement, with tensions running high and some residents leaving before the proceedings concluded.

The municipality has acknowledged the concerns raised and indicated that all public input will be considered before the final submission to NERSA.

Residents are encouraged to continue participating in the consultation process and submit their comments.

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