EXECUTIVE MAYOR NKOSINDIPHILE XHAKAZA’S STATEMENT ON THE SUSPENSION OF FIXED ELECTRICITY TARIFF CHARGES IN EKURHULENI

Thembisa – The Office of the Executive Mayor acknowledges the recent protest action in Tembisa related to the introduction of a fixed electricity tariff charge for the 2025/2026 financial year.

Background

In accordance with national regulatory requirements and directives from the National Energy Regulator of South Africa (NERSA), the City of Ekurhuleni periodically reviews its electricity tariffs informed by comprehensive Cost of Supply studies.

The recent reviewed tariff structure which introduced a fixed tariff charge prescribed by NERSA, was implemented as part of these standard regulatory processes, aimed at ensuring adequate investment in infrastructure maintenance, long-term sustainability of electricity supply, and equitable distribution of operational costs across all communities. This resulted in the addition of a fixed tariff charge within Category A for lower consumption users, specifically A2 for single phase non-indigent households.

This administration has consistently ensured that economically vulnerable households remain protected through the administration’s pro-poor policy approach and the city’s indigent support programme, which remains in effect and has recently been enhanced to better serve qualifying residents.

The Executive Mayor is, however, mindful of the events surrounding the violent unrest in Tembisa in 2022, which resulted in severe damage to municipal property, significant financial losses estimated in the millions of rands, and, most tragically, the loss of human life. While recognising that many community members expressed legitimate grievances at that time, the City also acknowledges with concern that these grievances were overshadowed by acts of criminality and vandalism.

Suspension of Fixed Charge Tariff In light of the prevailing circumstances, and following extensive consultation with key stakeholders as well as a thorough assessment of potential risks, the Executive Mayor has resolved to suspend the implementation of the fixed electricity tariff charge of R126.00 (including VAT), with immediate effect across Ekurhuleni. This decision is subject to urgent endorsement by the Ekurhuleni Metropolitan Municipal Council and will facilitate further structured public consultations.

The suspension is intended to:

• Enable comprehensive, inclusive, and orderly engagement with affected communities.
• Ensure that legitimate concerns raised by residents are systematically and effectively addressed.
• Mitigate the risk of recurrence of destructive and violent events such as those experienced in Tembisa during 2022.

The municipal administration is currently undertaking preparations to implement the suspension on the billing system, thereby ensuring immediate and effective cessation of the fixed charge pending the requisite Council approval and subsequent public engagement processes.

Call for Calm

The City calls upon all residents to remain calm, exercise restraint, and participate constructively and peacefully in the forthcoming consultative processes. The municipality remains fully committed to engaging robustly with residents regarding electricity tariffs and broader service delivery concerns; however, it must be firmly reiterated that acts of violence, vandalism, and criminality cannot and will not be tolerated. Such conduct will be met with swift and decisive legal action.

Furthermore, the Executive Mayor has consistently emphasised the distinction between genuine community concerns and criminal activities. Any attempt by criminal elements to exploit legitimate community protests remains unequivocally condemned and will be met with appropriate enforcement measures.

Social Relief Measures for Residents

In alignment with commitments made during the 2025 State of the City Address (SOCA), the City of Ekurhuleni has implemented a comprehensive social support package designed specifically to assist vulnerable and financially distressed residents. This package includes:

1. Revised Property Value Threshold

• The City has reviewed and adjusted the property value threshold, enabling broader access for vulnerable households to essential social relief and municipal support programmes. This revision ensures that more residents can qualify for relief, contributing directly to poverty alleviation and community well-being.

2. Debt Rehabilitation Scheme and Debt Write-Off

• A dedicated Debt Rehabilitation Scheme has been established to assist over-indebted residents experiencing genuine financial hardship. This programme provides qualifying households the opportunity for debt write-off, subject to adherence to specific criteria and regular payment compliance moving forward.
• The scheme reflects the City’s recognition of economic hardships, exacerbated by unemployment and economic pressures, and demonstrates its proactive stance in providing tangible relief measures.

3. Expanded Indigent Support

• The qualifying threshold for indigent status has been broadened to explicitly incorporate more households that are economically vulnerable. Through this expansion, qualifying indigent residents receive enhanced access to free basic services, rebates, and additional targeted social benefits, ensuring dignity and improved quality of life for those most in need.

4. Waiver of Service Connection Charges

• As an immediate relief intervention, the City has implemented a waiver of the R1,500 (excluding VAT) service connection charge previously levied on residents affected by cable theft. This waiver aims to alleviate financial burdens and promote the safe regularisation and restoration of electricity services. 5. Tempering Waiver (July–September 2025)
• The City will waive tampering charges for a period of three months; from 1 July 2025 to 30 September 2025, for residents only. This is a once-off amnesty period designed to allow residents to regularise their municipal connections without penalty.

These targeted social interventions underline Mayor Xhakaza’s sustained commitment to social justice, equitable service delivery, and meaningful support for our residents, particularly those most impacted by prevailing economic conditions.

Our foremost priority remains the achievement of an equitable, sustainable, and long-term solution that safeguards the interests and welfare of all residents while preserving the financial viability and operational integrity of municipal services.

The Executive Mayor reaffirms his commitment to transparent, accountable leadership and the importance of ensuring that every community voice is heard and respected throughout this critical process.

Issued by the Office of the Executive Mayor of the City of Ekurhuleni