As cash-strapped Newcastle residents brace for a wave of impending price increases in the coming months, with fuel costs expected to rise sharply alongside electricity tariffs projected to surge, the community is now being afforded an opportunity to have its voice heard on the proposed electricity increases at a municipal level.
Against this backdrop, the Newcastle Municipality confirmed on Friday morning, 20 March 2026, that it will convene a series of public consultations from Monday, 23 March until 28 March 2026.
The pubic consultations are expected to take place as follows:
- 23 March 2026 at Newcastle Town Hall for Wards 2 and 4, with the meeting scheduled for 6 pm.
- 24 Macrh 2026 at NOFTA Hall for Ward 3, with the meeting scheduled for 6 pm.
- 25 March 2026 at Hope High School for Ward 5, with the meeting scheduled for 6 pm.
- 27 March 2027 at Arbor Park Recreation Centre for Ward 34 with the meeting scheduled for 6 pm.
- 28 March 2027 at KwaMathukuza Sports Ground, also for Ward 34, with the meeting scheduled for 2 pm.
Through these engagements, the Municipality is seeking to gather input from residents, business owners and other stakeholders ahead of the implementation of new electricity tariffs for the upcoming financial year.
Meanwhile, this local process unfolds within the context of broader national adjustments, after the National Energy Regulator of South Africa (NERSA) approved an average tariff increase of 8.76% for customers purchasing electricity directly from Eskom, effective from 1 April 2026.
In contrast, municipalities procuring electricity in bulk will be subject to a 9.01% increase from 1 July 2026.
In this regard, as reported by Newcastillian News on 11 March 2026, following a media enquiry to Eskom, the power utility provided further clarity on the structure underpinning these increases, indicating that elements of the approved revenue recovery remain subject to regulatory conditions.
More specifically, the utility pointed to the phased recovery of a substantial revenue shortfall, with determinations already made for the 2027 and 2028 financial years, while the remaining balance is expected to be addressed over subsequent periods.
Furthermore, Eskom highlighted that aspects of the approved framework are conditional on performance benchmarks set by NERSA, effectively linking portions of the utility’s revenue recovery to operational outcomes. Consequently, this introduces an additional layer of regulatory oversight, even as tariff adjustments come into effect.
At the same time, the utility addressed concerns regarding changes to tariff design, particularly the shift towards higher fixed charges coupled with relatively flatter usage-based rates. While the headline increases remain below 10%, Eskom acknowledged that the effective impact on certain consumers—especially those with lower electricity usage—may be more pronounced due to these structural adjustments. In turn, the move forms part of a longer-term transition towards cost-reflective pricing.
Against this evolving landscape, Eskom’s Group Chief Financial Officer, Calib Cassim, reiterated earlier this week;
“We have been clear in communicating that Eskom is working to ensure that future tariff increase requests remain reasonable, recognising the affordability pressures on both residential and business customers. Achieving this depends on disciplined financial management and finding smarter, more efficient ways of operating.”
In addition, the utility has maintained that the approved increases are necessary to sustain operations and infrastructure investment.
“Eskom’s revenue requirement covers the cost of generating, transmitting and distributing electricity, while migrating towards a fair return needed to maintain and invest in critical infrastructure. NERSA considered both customer affordability and the long-term sustainability of the electricity system,” it stated, earlier this week.
Within this context, therefore, the Municipality’s consultation process takes on added significance, as it represents one of the few formal avenues through which residents can directly engage in how these national-level adjustments will ultimately be applied locally.
Emphasising this point, the Municipality’s Communications Team noted, “Your input is crucial for a transparent decision-making process.”
Crucially, as these consultations get underway, the onus now shifts to the public to actively engage with the process, not only to interrogate the proposed increases but also to ensure that local tariff decisions reflect the realities on the ground.
With national pricing pressures already set, the Municipality’s final determinations will directly shape how these increases are experienced at the household and business level—making participation in the coming days both timely and consequential.
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One Response
Married increases should not be too high