WaterCAN opposes hidden water levy increase of 65.6%

Johannesburg residents are being told that water tariffs will increase by an average of 12.5% in the City’s draft 2026/27 budget. But buried deep in the tariff documents is a separate fixed charge - the so-called “water demand management levy” - that is actually going up by a staggering 65.6%.

This levy will increase from R65.08 per month to R107.74 per month, before VAT. Once VAT is added, households will pay around R124 every month for this charge alone - regardless of how much water they use.

The problem is not only the size of the increase, but how it has been presented. The City states in its budget summary that the “Demand Levy” will increase by 12.5%, yet the actual increase for ordinary households is more than five times higher.

WaterCAN Executive Director Dr Ferrial Adam said the levy is effectively hidden for many customers.

“It is not presented with the tables on the residential water usage charges, but buried in the long tariff document. Unlike the water usage tariffs, where the old and new prices are shown side-by-side, the year-on-year levy increase is not clearly compared in the tariff tables. Residents would have to dig through multiple pages of the budget documents to even find it,”  said Adam.

This means many households may believe their bills are only increasing by around 12%, when in reality they could face higher monthly costs because of this hidden fixed charge.

The levy applies to almost every residential connection:

• Conventional post-paid households
• Prepaid water meter users
• Flats and complexes
• Multi-dwelling properties

Importantly, this charge applies whether a household uses very little water or a lot of water. Even families trying to save water and reduce consumption will still pay the full levy every month.

“For low- and middle-income households already struggling with rising electricity, transport and food costs, this creates another financial burden. Fixed charges are especially harmful because they punish people regardless of their efforts to conserve water,”  said Adam.

The City says the levy is meant to cover “network costs and the cost of the base water installation over the lifespan of the meter.” But the budget documents do not clearly show where this money goes or whether it is directly transferred to Johannesburg Water to improve infrastructure and reduce leaks.

At a time when residents are constantly told to use less water, it is deeply concerning that the City is quietly increasing a fixed charge by 65.6% while publicly describing tariff increases as averaging 12.5%.

This is part of an ongoing move by municipalities, including the City of Joburg, to increase fixed charges for services like water and electricity to secure a steady income stream regardless of how much customers consume. This makes it harder for customers to control their spending.

“Residents deserve transparency, honesty and a proper public explanation before such a major increase is approved,” she said.

WaterCAN calls on the City of Johannesburg to:

• Fully disclose the true impact of the proposed levy increase on household bills.
• Correct the misleading presentation of the tariff increases in the draft budget.
• Clearly explain how revenue from the levy will be used and whether it will be ring-fenced to directly fund infrastructure repairs, maintenance and leak reduction.
• Subject the levy increase to meaningful public consultation before approval.
• Protect low- and middle-income households from excessive fixed charges that make water less affordable.