Govan Mbeki Municipality residents will feel sharp tariff increase’s pinch by end of July
Electricity tariffs will increase by 12.74% while water and sanitation charges will rise by 11%.
Residents of Govan Mbeki Municipality (GMM) will feel the noose tighten around their wallets when they receive their consumer accounts at the end of July.
The council approved the steep price hike electricity and water tariffs at their council meeting held on May 27.
By July 1, electricity tariffs are expected to increase by 12.74% under approval from the National Energy Regulator of South Africa (NERSA), while water and sanitation charges will rise by 11%.
Property rates, refuse removal and other miscellaneous charges will increase by 3.7%. The council indicated the increase is to sustain service delivery amid rising bulk purchase.
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The council has also approved the 2026/2027 Integrated Development Plan (IDP) and an unfunded budget, despite objections from opposition parties over the municipality’s financial position.
The approval follows a series of ward-based public consultations recently conducted by the municipality on the draft IDP and budget for the 2026/27 financial year.
According to the draft financial framework presented to residents, the municipality projects an operating expenditure of R4.16b against total operating revenue of R3.81b, resulting in a projected deficit of R349.3m.
The budget includes an allocation of R192.8m for capital infrastructure investment. The budget was passed with majority support from the African National Congress and the Economic Freedom Fighters.
However, the DA and the Freedom Front Plus rejected the budget, arguing that it is unfunded and places additional pressure on residents.
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DA councillor Terry-Lee Kleynhans said the party could not support what it described as an unrealistic financial plan.
“As the DA, we will never accept an unfunded budget alongside failing financial recovery plans.
We cannot have a budget based on a 75% payment rate, something this municipality has never accomplished in a financial year.
“This directly violates Section 18 of the Municipal Financial Management Act,” said Kleynhans.
She further criticised the tariff increases, saying residents were being forced to carry the burden of the municipality’s financial shortcomings.
“It is also clear that the tariff increases will yet again burden residents with an electricity increase of 12.74% and water and sanitation of 11%. Residents are paying for the failures of the current failing municipality,” she added.
