eThekwini's proposed budget will see hefty increases for lights and water

Hefty tariff increases prompted by bulk water and electricity bodies as well as the city’s service delivery failures dominated debate at eThekwini municipality’s proposed budget for the 2025/26 financial year.

Mayor Cyril Xaba tabled the R71.3bn budget — with operating costs of R62.4bn and R7.1bn in capital — during a full council meeting at Durban’s ICC on Monday.

Xaba said the budget would prioritise infrastructure development, job creation and social upliftment.

“With this draft budget, we also commit to upgrading infrastructure, expanding public transport networks and strengthening our support for small businesses. Furthermore, we will continue to invest in social services, ensuring people have access to decent human settlements,” he said.

The focus on infrastructure was prompted by recurring floods which caused extensive damage to water, electricity and sanitation facilities, and the need to address challenges posed by rapid urbanisation, he said.

The proposed budget includes increases of:

• 15% and 16% for water in households and businesses respectively;
• 12.72% for electricity;
• 13% and 14% for domestic and business sanitation;
• 9.9% and 9% for domestic and business refuse collection; and
• 6.5% for property rates.

The draft water increase follows a 13.5% hike by uMngeni-uThukela Water Board, meaning the city added 1.5% and 2% increases for domestic and business respectively.

The electricity increase comes after an 11.32% Eskom hike, as the city added 1.4 percentage points.

The draft increase in sanitation is in line with the proposed uMngeni-uThukela Water increase.

Xaba said they were objecting to the “hefty increases” by the electricity and water boards through the South African Local Government Association (Salga).

“Salga is engaging with the minister of DWS. We await a decision in this regard. She has until Tuesday to respond.”

The ANC caucus welcomed the city’s pushback against these increases, saying it was calling for “reasonable increases”.

“This demonstrates a firm commitment to balance the financial sustainability with affordability, ensuring that essential services remain within reach of our residents,” said Nkosenhle Madlala.

Those sentiments, however, were not shared by the whole house.

Andre Beetge of the DA acknowledged the increases from the water and electricity increases authorities but asked why it was the ratepayers who had to cover those expenses.

He argued the city should, instead, start implementing cost-cutting measures like doing away with certain luxuries for councillors.

“As much at the DA agrees that water and electricity should enjoy priority, it shouldn't be achieved on the back of increases that are divorced from the reality of inflation; that serves little more than disadvantaging the ratepayers of this city.”

ActionSA’s Zwakele Mncwango added: “These increases will pose a serious threat to the financial stability of eThekwini residents, who are already burdened with some of the highest tariffs in the country, unreliable service delivery, frequent power outages, erratic water supply and crumbling infrastructure.”

He proposed an amended draft budget without additional increases enforced by the water authority and inflation, but it was rejected by the majority of the council.

The EFF and IFP noted the council was not voting to accept the budget but giving permission to take it out for public participation.

“As the IFP we support the budget must go out and only after the public says can we talk about the lot that can change. We are looking forward to this budget accommodating the poorest of the poor,” said Mduduzi Nkosi, IFP caucus leader.

The EFF’s Themba Mvubu agreed on public consultation but added the party didn't support the proposal.

The proposed budget will undergo public participation processes before being brought back to council for final adoption.

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