Joburg still refuses to ringfence water and electricity revenue

The Organisation Undoing Tax Abuse (OUTA) and its initiative, the Johannesburg Community Action Network (JoburgCAN), call for urgent alignment between the City of Johannesburg’s (CoJ) 2025/26 Integrated Development Plan (IDP), budget, and the City’s own adopted turnaround strategies for key service delivery entities.

In July 2024, the City council adopted critical turnaround strategies for Joburg Water and City Power. These reports revealed the systemic failures in funding, maintenance, and operational independence required for effective service delivery.

Despite this, the draft IDP and Budget for 2025/26 fail to reflect these strategy plans.

“The City’s own strategies called for streamlined operations and direct access to resources and budgets by its entities. Yet, the draft IDP fails to allocate ringfenced revenue or equitable share grants directly to Joburg Water, undermining its ability to cover bulk supply costs,” says Julia Fish, Regional Manager at JoburgCAN.

JoburgCAN warns that this misalignment risks undermining the progress promised in these turnaround plans and calls for a revision of the IDP and budget before final adoption. The organisation also raises concerns about the compatibility of the City’s plans with the national Presidential Working Group’s action plans, particularly in light of the upcoming G20 Summit and potential national and provincial funding reallocation.

“If the City does not honour its own policies, then these documents must be overhauled. The upcoming international spotlight on Johannesburg through the G20 Summit is a crucial opportunity for transformation, but only if the right foundations are laid,” adds Fish.

Key budget concerns highlighted by JoburgCAN

• The budget includes above-inflation increases across basic services, with water and sanitation tariffs set to rise by 13.9% and electricity by 12.41%. These hikes are unaffordable for many households and fail to address service inefficiencies.
• Sanitation charges based on property size remain in place, despite long standing objections. JoburgCAN advocates for a consumption-based model that aligns with actual water usage, which is more equitable and defensible.
• The City’s waste services operate with a R1 billion deficit, funded through property rates, without a credible recovery plan. JoburgCAN urges a shift to consumption-based billing, better service differentiation in high-density areas, and transparency through performance metrics.
• While staff numbers decline, employee costs rise to R21.6 billion, and councillor and board member compensation increases. This happens despite limited oversight improvements, raising questions about fiscal discipline.
• Persistent billing errors, outdated systems, and poor customer service are the root of many revenue challenges. Fixing these would resolve disputes, reduce illegal connections, and restore public trust.

“This budget must be more than just numbers. It must become a tool to rebuild the city’s economic and social resilience,” says Julius Kleynhans, OUTA’s Executive Manager for Local Government. “We urge the City to prioritise ethical collection practices, performance-based budgeting, and urgent reforms in the billing system.”

Recommendations by JoburgCAN and OUTA

• Freeze or stagger tariff increases, particularly for vulnerable households.
• Accelerate Free Basic Services (FBS) outreach and develop a practical indigent registry.
• Adopt performance-based budgeting, starting with high-impact fixes like addressing Johannesburg’s top 100 water-loss sites.
• Reform sanitation billing to a consumption-based model aligned with water usage.
• Increase transparency in councillor remuneration and non-executive board fees.
• Align the IDP and budget with the Presidential Working Group’s action plans to unlock national support.

“The City needs to become more customer-centric and ensure that its revenue covers sustainable basic service delivery and addresses the challenges that constrain it from doing so,” says Kleynhans. “JoburgCAN remains committed to co-governance and helping shape a more liveable, equitable, and well-managed Johannesburg.”

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