The Endumeni Chamber of Business has formally objected to proposed seasonal electricity tariff increases contained in the municipality’s 2026/27 budget proposals.

Chamber questions consultation and legality

The proposed tariff structure, expected to run from June 1 to August 31, could significantly increase electricity costs for businesses and bulk users across the municipality.

In a letter addressed to the mayor, speaker and municipal manager, chamber president Alan Schonken said businesses were deeply concerned about the lack of consultation and uncertainty surrounding the proposed seasonal tariff system.

The issue previously sparked strong opposition from the business sector last year after the municipality attempted to introduce seasonal tariffs that reportedly added as much as 60% to some electricity bills.

Following backlash from local businesses and the chamber, Mayor Mcebo Mkhize attended a meeting with stakeholders, after which the municipality withdrew the proposal.

Schonken said businesses had again not been given a meaningful opportunity to participate in discussions around the latest proposed tariff structure.

“We have been informed by local businesses that current billing done over 30 days in some areas is mismatched to the normal amount of regular billing,” he said.

The chamber has requested that the municipality explain how the proposed seasonal tariffs would be implemented and justified.

Concerns were also raised about whether the tariffs have been approved by the National Energy Regulator of South Africa (NERSA) and properly incorporated into the municipality’s tariff policy.

“Despite diligent research, no tariff policy and other compliant documentation could be found on the municipality’s website,” the letter stated.

The chamber warned that, should the municipality fail to provide proof of the necessary approvals, it reserves the right to seek legal intervention or lodge disputes in terms of Section 102 of the Municipal Systems Act.

The organisation has called on the municipality to urgently engage with stakeholders in an effort to reach consensus on what it described as a “very sensitive implementation”.

According to NERSA guidelines, municipalities may implement seasonal tariffs only if they form part of an approved tariff structure following the required public participation and legal processes.

South African courts have also previously ruled that municipal electricity increases must be supported by accurate cost-of-supply studies before approval can be granted.

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