Note to Editors: Please find attached English and Afrikaans soundbites by Cllr Piet Botha and Sesotho soundbite by David Masoeu MPL.
At the recent Council meeting on the proposed 2026/2027 budget, the ANC-led Matjhabeng Municipality put forward tariff increases that can only be described as reckless, unjustifiable, and economically destructive:
- Electricity: +23% (NERSA guideline: 9.01%)
- Water: +25% (VCW increase: 9.5%)
- Property Rates: +7%
- Refuse Removal: +7%
- Sewerage: +7%
These increases are being proposed in an environment where CPI sits at 3.4%, unemployment is among the highest in the Free State, and economic growth in Matjhabeng is negative (-1.45%).
Let’s be clear: this is not budgeting. This is shifting the cost of municipal failure directly onto residents and businesses.
Matjhabeng’s own data paints a devastating picture:
- 36.7% unemployment
- Over 150,000 adults without work
- A poverty rate exceeding 60%
In a municipality where the majority are already struggling to survive, the ANC is proposing increases that will push households and businesses past breaking point. The justification for these increases collapses under basic scrutiny.
The so-called Cost of Supply Study for electricity was conducted in only 10 out of 36 wards. That is not a lawful or credible basis for a 23% increase, it is incomplete, irrational, and open to challenge. On water, the situation is even worse.
Matjhabeng is losing approximately 56% of its water through leaks and infrastructure collapse. This translates into an estimated R360 million per year in losses.
Instead of fixing this, the municipality is attempting to recover its losses by charging residents more. This is fundamentally wrong. Residents cannot be expected to subsidise inefficiency, neglect, and administrative failure.
During Council deliberations, the DA raised these concerns clearly and repeatedly. The Matjhabeng Business Forum also warned of potential widespread resistance, including non-payment.
These warnings were ignored. The ANC, through the Executive Mayor, chose to proceed regardless, demonstrating a complete disregard for economic realities and residents’ lived experience. This is how governance failures escalate into public conflict.
We have written to National Energy Regulator of South Africa (NERSA), urging it to reject the proposed 23% electricity increase on the basis that it is unjustified and procedurally flawed. Further pressure will be applied to force the municipality to reconsider this approach.
We will not support a budget that punishes residents for municipal failure. We will oppose these increases at every available platform.
Residents have until 20 May 2026 to submit written objections. Objections can be sent to:
vuyo.adonis@matjhabeng.co.za Thabo.panyani@matjhabeng.co.za
Silence will be interpreted as acceptance.
This is not about tariffs. This is about a municipality that has failed to manage its finances, maintain its infrastructure, or grow its economy and is now attempting to survive by extracting more from a shrinking, overburdened ratepayer base.
The DA stands for inflation-linked, realistic, and sustainable increases, not punitive hikes that will drive businesses out and leave residents behind.
Our residents cannot afford this. Full stop.