The City of Cape Town implemented new residential electricity tariffs effective 1 July 2026, sparking a political clash between the Patriotic Alliance (PA) and the Democratic Alliance (DA) over responsibility and cost structure. The dispute centres around the components of the electricity bill and who is accountable for tariff increases amid Eskom’s rising bulk power costs.
The City’s published tariff framework shows that residential electricity costs depend on monthly consumption, property valuation, meter type, and eligibility for indigent or social grant rebates. Domestic customers pay R4.1379 per kWh for up to 600 kWh, with a monthly Services and Wires Charge of R74.77 including VAT. Home Users are charged R3.5595 per kWh up to 600 kWh alongside a higher monthly fixed charge of R424.30. Lifeline customers benefit from a reduced rate of R2.8304 per kWh with no fixed service charge.
Overall, the City announced a 6.64% increase in average residential tariffs for the 2026/27 financial year, slightly below Eskom’s municipal bulk tariff hike of 9.01%. Cape Town’s tariff documents confirm these figures as part of the approved municipal budget.
At the centre of the political argument, Cheslyn Daniels, PA mayoral hopeful, accused the DA-led City of using Eskom’s tariff increases as an excuse for high electricity bills. “The DA-led City sets its tariff structure, adds service and wires charges, approves them through its budget and collects the money,” Daniels said, highlighting the City’s role in deciding rates and charges.
In response, DA councillor Angus McKenzie emphasised that “Cape Town does not control the price of the electricity Eskom produces and sells to the City,” underlining the limited influence local government has on Eskom’s bulk pricing. Mayco member for Energy Xanthea Limberg described the PA’s claims as “completely false,” clarifying that “all income is used to buy bulk electricity from Eskom and cover the cost of service provision, including maintaining the electricity infrastructure and network.”
This dispute reflects the complex structure of electricity pricing, where Cape Town residents’ bills incorporate both Eskom bulk power costs and municipal network charges. While tariffs have risen, the City’s published documents show a tariff structure that attempts to balance these components while managing the service and infrastructure costs.
The political debate remains influenced by upcoming local elections, with each party seeking to position its narrative on who bears the cost responsibility. However, independent verification confirms the published tariffs and charges as accurate per City of Cape Town documents accessed on 30 September 2026.
Further clarity on the claims surrounding the proportion of tariff income spent on Eskom bulk power, the comparative cost of independent power purchase agreements, and political strategies remains unverified. Cape Flats News will continue monitoring statements and City updates ahead of the next local government elections.