The relentless rise in the cost of living has left Newcastle residents struggling to stretch already strained household budgets. On top of paying for basic necessities, they are now faced with steeply escalating municipal utility bills from the Newcastle Local Municipality. The situation has intensified in recent weeks, with many residents receiving sharp increases in their monthly municipal accounts.
Such is the frustration that a handful of residents from Ward 5, which encompasses Barry Hertzog Park, Amajuba Park and Ncandu Park, have taken it upon themselves to call for a public meeting with the Newcastle Municipal Speaker, Councillor Thengi Zulu, and the Newcastle Mayor, Councillor Xolani Dube.
Discussing the matter, a resident who opted to remain anonymous explained that locals have simply had enough.
“Having noticed the exorbitant increase in our bills, we wrote to both the Speaker and Mayor with their Exco members, inviting them to a meeting last week. People are struggling to make ends meet, paying school fees, buying groceries, paying rent and then you get a municipal bill that you can barely afford. It is impacting the entire community, and we are now calling on all rate payers, including schools and businesses, to the planned meeting, which is scheduled to take place on 16 September 2025 at Ferrum High School from 5:30 pm,” she said, noting that she was cautious to use her name, out of concern of victimisation.
Ward 5 Councillor, Cllr Musa Ndlovu, confirmed his awareness of the meeting but explained that he could not comment further on the matter, as this was a gathering initiated entirely by the community. Moreover, Newcastle Municipal Speaker Cllr Zulu stressed that it was essential for residents to attend, pointing out that only through collective engagement between municipal officials and residents could these mounting concerns be properly addressed.
The tariff hikes, approved through mandatory budget reviews under national legislation and implemented as part of the Municipality’s Integrated Development Plan (IDP), are intended to close funding gaps for municipal services at a time of escalating operational costs.
However, the increases have sparked widespread unease about affordability, particularly in the context of South Africa’s broader economic difficulties. The Newcastle Municipality outlined that, effective from 1 July 2025, residents will face the following adjustments:
- Property rates: 6%
- Sewerage: 6%
- Refuse removal: 6%
- Water: 7%
- Electricity: Average of 13%
It should also be noted that, as clarified by the Newcastle Municipality’s Communications Unit at the time, the 7% increase in water tariff and the 13% electricity tariff would increase as from 1 August 2025.
Furthermore, as explained by the Municipality during the Mayoral Roadshows for the Integrated Development Plan for 2025/2026 held in May 2025, these adjustments will contribute to boosting the Municipality’s projected revenue streams, which are as follows:
- Electricity Service Charges: R1.015 billion
- Water Service Charges: R249.7 million
- Sewer Service Charges: R164.0 million
- Property Rates: R455.8 million
- Grants Equitable Share: R651.9 million
- Other Revenue: R1.436 million
While the tariff increases are being defended as necessary to secure the Municipality’s financial position, residents remain deeply concerned about the real-world consequences.
A Barry Hertzog Park resident emphasised the severity of the situation, stating, “How are pensioners supposed to afford these types of bills, I am now having to start looking at choosing between my medication and paying for the monthly utility bills. This simply cannot go on, especially with AMSA now retrenching so many people. How are these people going to afford their monthly utility bills and still try and support their families with whatever money they get after being retrenched?”
Furthermore, the upcoming public meeting represents a crucial opportunity for Newcastle residents to voice their concerns directly to municipal leadership and seek clarity on the steep increases in utility tariffs.
As communities continue to struggle under the weight of rising living costs, the gathering at Ferrum High School on 16 September 2025 will not only highlight the financial pressures on households but also serve as a platform for constructive dialogue between residents, schools, businesses, and municipal officials.
Ultimately, the outcome of this engagement could shape how the Municipality addresses affordability, transparency, and service delivery, underscoring the importance of active citizen participation in holding local government accountable.
What are your thoughts? Let us know below.
Be sure to read, Teacher Sexual Abuse in KZN Schools Rises Sharply, if you missed it.
FAQs
The meeting is scheduled for 16 September 2025 at 5:30 pm at Ferrum High School in Newcastle.
The meeting was initiated by frustrated residents of Ward 5, which includes Barry Hertzog Park, Amajuba Park, and Ncandu Park.
Invited officials include Newcastle Municipal Speaker Cllr Thengi Zulu and Newcastle Mayor Cllr Xolani Dube, along with members of the Executive Committee.
Residents are struggling with steep tariff hikes for water, electricity, property rates, sewerage, and refuse removal, which they say are unaffordable given South Africa’s rising cost of living.
Property rates: 6%
Sewerage: 6%
Refuse removal: 6%
Water: 7%
Electricity: 13% average
According to its 2025/2026 IDP, projected revenue streams include:
Electricity service charges: R1.015 billion
Water service charges: R249.7 million
Sewerage service charges: R164.0 million
Property rates: R455.8 million
The meeting gives residents, schools, and businesses an opportunity to voice concerns directly, demand accountability, and seek transparency on how rising utility tariffs are managed by the Newcastle Municipality.
4 Responses
Not only the 3 mention parks it’s the hole Newcastle west. We don’t know the tariffs of Newcastle east? Municipality must also bring us proof of Newcastle east tariffs as I am sure it will be a big difference. All these Municipality costs are our of control, and services we pay for also not been adhere to. If tariffs not been dropped we will not accept any excuses any more. Bottom line all fees must be lowered and thats that.
The municipality should do away with the availability charges and simply charge us for what we use. The increase is not to fund projects or service delivery but it is funding the pockets of municipal officials.
A 13% increase in the Electricity price, does not constitute the increases in bills that amount to between R1500 and R5000.
We can all do math, but it seems the Municipality uses a Nkandla calculator.
Residents report 35% to 65% increases.
This is between three and five times more than the Municipality claims to have increased it…
The main problem with the Newcastle municipality is that they lack creativity on coming with collection processes. The only system of collection could only be enforced in the West of Newcastle, while the entirety of the East doesn’t pay for the services. Hence there is a steep preasure on the West. Unfortunately this can only get worse and lead to infrastructural colupse. The strain that is on the west is now unbearable, considering especially the closure of industries like Arcelo Mittal and other companies which were forming the backbone of the economical infrastructure of Newcastle.