Municipalities across South Africa are facing increasing pressure as electricity tariff hikes place strain on both local government finances and residents’ ability to pay.

From Wednesday, residents in 176 municipalities began paying higher electricity tariffs following increases approved by the National Energy Regulator of South Africa (Nersa).Major metros have been significantly affected, with the City of Ekurhuleni experiencing a 12.70% increase, Nelson Mandela Bay 10.09%, eThekwini 9%, Tshwane 8.80%, Johannesburg 8.63%, and Cape Town 7.50%.These adjustments come amid growing concerns about affordability and the sustainability of municipal electricity provision.

The South African Local Government Association (Salga), represented by president Bheke Stofile, has highlighted rising tensions between municipalities and communities.

Stofile explained that municipalities are caught between escalating bulk electricity costs and households that are increasingly unable to absorb higher tariffs.He warned that electricity pricing approved by Nersa has become a major burden for local governments, which must also manage public dissatisfaction.

According to Salga, municipalities are responsible for a wide range of costs including infrastructure maintenance, network repairs, staffing, losses due to cable theft and vandalism, technical inefficiencies, and ageing electricity systems.However, these costs are not always fully reflected in the tariff-setting methodology used by regulators.

Stofile also raised concerns about the timing mismatch between Eskom’s bulk tariff increases in April and municipal tariff adjustments implemented in July.

This three-month gap, he said, forces municipalities to absorb higher costs before they can legally adjust their own tariffs, deepening financial pressure and operational strain.