The Freedom Front Plus (VF Plus) voted against the Ekurhuleni Metro’s proposed 2026/27 budget yet again today, as it was tabled to the Council virtually unchanged, with serious financial and regulatory questions still unanswered.
After the budget was rejected during the council meeting on 11 June, the Executive Mayor, Nkosindiphile Xhakaza, and the Mayoral Committee Member for Finance, Jongizizwe Dlabathi, were given seven days to revise the budget and table it again.
The Freedom Front Plus warned that the budget is based on unrealistic assumptions, including a collection rate of 90%, a projected surplus of R1,523 billion and proposed bridging finance of R500 million.
In the interim, more information regarding Ekurhuleni’s electricity tariffs came to light which further undermines the credibility of the budget.
It is extremely problematic for the Freedom Front Plus that the Council is expected to adopt a budget that relies heavily on electricity revenue, while the underlying tariff structure remains uncertain.
This follows an announcement, on instruction of the court, by the electricity regulator, NERSA, that it will only make its final decision on Ekurhuleni’s tariff structure known on 23 June 2026.
Furthermore, NERSA’s calculations indicate that the Metro could collect an additional R942 million if it reduces its existing electricity losses from 15,54% to 12%.
This amount could increase to more than R2,5 billion if Ekurhuleni limits its electricity losses to 6%.
The Freedom Front Plus wants to know why tariff hikes of 11% for water, 8,35% for sanitation, up to 9,01% for electricity, 3,4% for refuse removal and 2% for property rates are imposed on residents, while billions are lost through electricity losses and poor financial controls.
Since the budget was not adopted yet again, a revised budget must be tabled within seven days.
Residents should vote for the Freedom Front Plus on 4 November 2026 for a budget based on realistic projections, responsible governance and better service delivery.
