Johannesburg wants to charge residents more for water they don’t receive

The City of Johannesburg (CoJ) has come under fire for seemingly misleading its residents about its proposed water tariff increases.

The CoJ drafted its proposed tariff increases for the 2026/27 financial year on 31 March 2026, which are set to come into effect from 1 July.

Among these, the city drafted a 12.5% increase on its water demand management levy, increasing to R107.74 per month for domestic properties and R413.84 per month for non-domestic properties.

“The demand levy is a fixed charge for each water connection to cover the network costs and cost of the base water installation over the lifespan of the meter, irrespective of the consumption,” the city said.

However, a recent Moneyweb report revealed that the 12.5% increase as advertised only applies to non-domestic customers, such as commercial and industrial properties.

Domestic properties, including all residential properties and mixed-use dwellings, will be subject to a 65.6% increase in their fixed water demand levy.

The current water demand levy for domestic properties, as tabled for the 2025/26 financial year beginning 1 July 2025, is R65.08 per month.

A 12.5% increase on this levy, as advertised by the city in its draft tariffs for the upcoming financial year, would see this amount rise to only around R73.22 per month.

Last year, the water demand levy also saw a staggering increase of 77.9% for domestic properties, compared to just 13.9% for non-domestic properties.

If the current proposed tariff increases are approved, the water demand levy for domestic properties will have jumped 194.5% in the span of just two years.

The levy was first introduced for both domestic and non-domestic properties at the start of the City’s 2017/18 financial year, and applies to both prepaid and postpaid water meters.

It is worth noting that the proposed levy increases are VAT exclusive, meaning the actual cost increases will likely be even higher in practice.

Residents punished for city’s failures

Water justice initiative WaterCAN said they are significantly opposed to the steep water levy increase outlined in Moneyweb’s report.

The increase comes at a time when the CoJ is facing a severe water crisis, with frequent water shortages resulting from significant water loss.

Deteriorating water infrastructure has exacerbated this problem, with an estimated 48% of Johannesburg’s water being lost to leaks, pipe bursts, and illegal connections.

In a statement, WaterCAN executive director Dr Ferrial Adam said Johannesburg’s residents should not be punished for the city’s failings.

“What is deeply concerning is not only the scale of the increase, but the lack of transparency around it,” Adam said. “On the one hand, residents are being told to pay more and more for water and services.”

“On the other hand, the City cannot, or will not, even pay the contractors needed to keep the water system operating or properly capitalise the entities responsible for this work.”

Finance Minister Enoch Godongwana recently said funding for Johannesburg would be withdrawn unless the city could better manage its finances.

The minister specifically pointed to a serious overestimation by Johannesburg Water in revenue from service charges, and warned that the under recovery could worsen if the trend continues.

Adam said this raised serious concerns around whether the revenue collected for water services is properly ring-fenced to be used for the maintenance of those water services.

“Treasury is right to intervene, but poor communities cannot become collateral damage in a crisis created by years of political and financial mismanagement,” Adam said.

“There should rather be consequence management, and officials and the MMC for finance should be fired. The poor should not be punished for a crisis they did not create. A workable, socially responsible plan is required.”

WaterCAN called on the city to urgently disclose exactly how much is currently owed to Johannesburg Water’s contractors and other service providers.

It also requested the publication of a 30-day creditor payment and recovery plan and that money collected for water services be used solely for water infrastructure.