As fuel prices continue to surge, the eThekwini Municipality has unveiled proposed tariff increases for the 2026/27 financial year, citing rising input costs and the need to maintain financial sustainability.
The proposed hikes, which will affect key services such as electricity, water and sanitation, were tabled by Mayor Cyril Xaba during the presentation of the city’s R74.7 billion draft budget at the Durban International Convention Centre on Tuesday.
Under the proposals, households and businesses could see electricity tariffs increase by 10.5% from next month. Water tariffs are expected to rise by 16% for businesses and 15% for residential users, alongside a 13% bulk tariff increase from uMngeni-uThukela Water.
Sanitation charges are set to increase by 14% for businesses and 13% for households, while refuse collection tariffs for residential users are expected to rise by 13%, with varying increases for businesses depending on service levels.
Municipal officials say the proposed increases aim to balance affordability with the need to sustain service delivery amid escalating costs from service providers.
The draft budget will now be opened for public consultation, allowing residents, businesses and civil society groups to provide input before it is finalised.
However, some stakeholders have raised concerns that the combined impact of rising fuel prices and electricity tariff increases could place additional strain on households already under financial pressure.
Earlier this year, the National Energy Regulator of South Africa approved electricity tariff increases of 8.7% for 2026 and 8.8% for 2027 to address a revenue shortfall at Eskom. The utility has attributed the deficit, estimated at R107 billion, to an error in the regulatory asset base calculation.