South Africa faces a significant challenge in its municipalities. Recent elections (2021) resulted in a large influx of inexperienced leaders, with two-thirds of councilors and mayors new to the sector. Additionally, a concerning number of councilors lack a matric qualification (one-third).

These inexperienced municipal councils are being increasingly challenged by fiscal consolidation at the national government level. This means funding for the extremely popular free basic municipal services (FBS) program, primarily financed by equitable share grants, will be significantly reduced in the coming years. This presents a difficult situation for many of the councilors who derive their political support from the program’s popularity.

Further compounding the difficulties of municipal governance is Eskom’s well-documented mismanagement. Burdened by massive debt and unpaid bills from municipalities (totaling R75 billion), Eskom proposed a drastic 40% price hike for electricity in 2025 to stabilize their finances, While Eskom has a history of having these proposals scaled back by NERSA, the underlying financial strain is undeniable.

The rising cost of electricity is leading to a concerning trend of customer defection, with both businesses and ratepayers seeking alternative sources like solar power. This further weakens Eskom’s financial position and threatens the revenue sources of local municipalities.

This situation has led the Ndlambe local municipality to adopt a concerning policy. They are restructuring their tariff system to increase the fixed service charges, essentially penalizing those who respond to the outrageous cost increases of electricity by decreasing consumption. This policy document (link: https://ndlambe.gov.za/web/wp-content/uploads/2024/07/3.-TARIFF-POLICY-20242025.pdf) outlines charging ratepayers a capacity charge based on a hypothetical 40 amp need even if they disconnect from the electricity supply. This raises concerns about potential future increases in these punitive charges as Eskom continues to fail.

Taking Action

Citizens can push back against these practices. Signing the ratepayers’ petition and encouraging others to do so is a crucial first step. By uniting, we can advocate for responsible leadership and fair electricity pricing for our communities.

Link to the petition Ndlambe Ratepayers’ Pledge