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Tariff Hikes in Mogale City Are Essentially Tax on State Capture

Residents of the Mogale City Local Municipality (Krugersdorp, Magaliesburg, Muldersdrift) will have to shell out following the enormous tariff increases announced on Tuesday during a special council meeting. The ANC/EFF-controlled Council announced water and sanitation tariff increases of 15,3% for the 2025-2026 financial year, while electricity tariffs will climb by an estimated average of 11,3%. […]

The post Tariff hikes in Mogale City are essentially tax on state capture appeared first on Freedom Front Plus.

Residents of the Mogale City Local Municipality (Krugersdorp, Magaliesburg, Muldersdrift) will have to shell out following the enormous tariff increases announced on Tuesday during a special council meeting.

The ANC/EFF-controlled Council announced water and sanitation tariff increases of 15,3% for the 2025-2026 financial year, while electricity tariffs will climb by an estimated average of 11,3%.

The ANC Mayor, Lucky Sele, naturally claimed that these tariff increases are beyond the Council’s control, as Eskom and Rand Water have also raised their prices.

However, state-controlled entities have been under financial strain ever since the years of state capture, and now it seems that ordinary consumers are being squeezed to plug the financial gaps.

Since electricity tariffs in Mogale City are now determined by an increasing block tariff structure, it is nearly impossible to pinpoint the exact tariff hike.

The biggest tariff hike (20,48%) is imposed on Block 4 for large domestic consumers – these are households receiving multi-phase power and using more than 1 400 units per month.

Commercial consumers and industries will face increases of more than 11% across the board.

These increases are clearly designed to milk wealthier residents for every possible cent.

The commercial and industrial tariffs will undoubtedly also have a negative impact on job creation, further widening the gap between the rich and the poor.

The National Energy Regulator of South Africa (Nersa) still needs to approve Mogale City’s application for the electricity tariff increases.

Freedom Front Plus Infrastructure Development: The FF Plus supports infrastructure development in rural areas.

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