2024 update: Municipal water & electricity tariff increases vs inflation since 1996

10Aug
by Sean Moolman  
0

In 2021, we published an analysis of municipal water & electricity tariff increases compared to inflation since 1996. 

That analysis revealed a shocking reality: the average price of both water & electricity across the four largest South African municipalities increased about four times faster than inflation.

This was a sad state of affairs in a country where a large part of the population lives in poverty.

The question is: have things improved or deteriorated further since 2021?

To answer this question, we have updated the analysis with data up to 2024. The result is shown in the graph below.

Note: The graph depicts overall average increases for residential consumers – actual increases will be different for different types of consumers (residential, commercial and industrial) and will vary between municipalities.

Looking at the graph, the following can be noted:

  • Both water and electricity tariffs have increased dramatically faster than inflation over the period 1996 to 2024.
  • In fact, water tariffs have increased even faster than electricity tariffs, despite the electricity tariff increases receiving a lot more negative attention from the press and consumers.
  • Over the period 1996 to 2024, electricity tariffs increased almost 5 times faster than inflation and water tariffs increased almost 6 times faster than inflation.

The unfortunate conclusion is that the unsustainable trend of much higher than inflation increases in the price of water & electricity by municipalities has continued over the past three years.

This is despite continued deterioration in municipal water & electricity infrastructure, leading to an increase in local power failures and water supply disruptions. 

Sources:

  1. See our previous article for methods, assumptions and references: The Price of Water and Electricity in South Africa: A Tale of Two Tragedies.