Joburg July 2026 utility tariff hikes explained
From 1 July 2026 every City of Johannesburg household pays more for water, electricity, sanitation and refuse — and Mosaic Wallet is built to absorb the shock.
On 30 and 31 March 2026 the City of Johannesburg Council approved the FY2026/27 utility tariff schedule for implementation from 01 July 2026. The headline increases, released by Group Finance in the Approved Tariffs FY2026/27 poster, are:
- Water: 12.5%;
- Sanitation: 11%;
- Electricity: 8.63% (average);
- Refuse: 6.2%; and
- Property rates: 3.6%.
These increases follow the already steep FY2025/26 hikes and continue a multi-year cycle in which CoJ utility costs have risen well above headline inflation. For prepaid utility households — including every Mosaic Wallet resident — the rand impact is immediate, transparent and unavoidable. This article explains exactly what is changing, why prepaid users in particular need a tighter consumption view, and how Mosaic Wallet is structured to absorb the increases without disrupting household cash flow.
What the City of Johannesburg actually approved
The approvals come from three Mayoral Committee items signed off by Council on 30 and 31 March 2026:
- Item 76 — City Power Johannesburg (electricity);
- Item 77 — Johannesburg Water (water and sanitation); and
- Item 78 — Pikitup Johannesburg (refuse and the City Cleaning Levy).
Property rates are handled separately through the FY2026/27 Group Finance Medium-Term Expenditure Framework (MTEF) budget, with a 3.6% increase tabled by the City for the new financial year. Coverage of the broader R28.3-billion energy-security allocation inside the FY2026/27 budget is published on the official City of Johannesburg newsroom.
Year-on-year comparison
| Service | FY2025/26 approved | FY2026/27 approved |
|---|---|---|
| Water | 13.9% | 12.5% |
| Sanitation | 13.9% | 11% |
| Electricity | 12.74% | 8.63% |
| Refuse | 6.6% | 6.2% |
| Property rates | 4.6% | 3.6% |
FY2026/27 is a slower-rising year than FY2025/26, but the compounding effect remains material. A household paying R3,200 per month on combined CoJ utilities in June 2025 will, on the same volume profile, pay roughly R3,920 by July 2026 — an effective 22% lift over twenty-four months before any consumption growth.
Electricity — why the 8.63% is not the full story
On 4 March 2026 the National Energy Regulator of South Africa (NERSA) approved an effective average Eskom bulk-purchase cost increase of 9.01% to municipal entities for FY2026/27. Mayoral Committee Item 76 records City Power’s proposal to limit the customer-facing increase to an average of 8.63% by holding the network capacity charge flat for residential prepaid (high) and residential conventional 60A customers, in the interest of affordability for the most price-sensitive household groups.
The implication for prepaid wallet users is that the average increase is slightly cushioned, but every unit of energy bought after 1 July 2026 still carries the higher kWh rate. For a household using 600 kWh per month on the residential prepaid (high) tariff, an 8% lift in the energy rate translates into roughly R130 to R180 of additional monthly electricity spend, depending on which consumption block the household occupies.
For background on how smart metering compresses the reconciliation lag between Eskom and City Power tariff cycles and on-property consumption, see our companion analysis on IoT utility metering and the future of community management in South Africa.
Water and sanitation — 12.5% and 11% with the first 6 kilolitres still free
Johannesburg Water’s Mayoral Committee Item 77 confirms that the first 6 kilolitres per month remains free for residential customers, with every band above that increasing on average by 12.5% on the water side and 11% on the sanitation side. The rising-block tariff design means that households crossing into higher consumption bands absorb a disproportionate share of the increase.
Residential prepayment water tariff bands (per kilolitre, VAT exclusive, demand levy exclusive)
| Band (kl per month) | FY2025/26 | FY2026/27 |
|---|---|---|
| 0 to 6 | Free | Free |
| >6 to 10 | R25.70 | R28.91 |
| >10 to 15 | R26.52 | R29.84 |
| >15 to 20 | R31.69 | R35.65 |
| >20 to 30 | R57.36 | R64.53 |
| >30 to 40 | R61.75 | R69.45 |
| >40 to 50 | R77.16 | R86.81 |
| >50 | R84.38 | R94.92 |
A 25-kilolitre-per-month household will pay roughly R85 more per month on water alone after 1 July 2026, before any sanitation, demand-levy or VAT pass-through. eNCA’s breakdown of the FY2026/27 water hikes illustrates how quickly the rand impact compounds on mid-volume households.
Refuse and the City Cleaning Levy — the 6.2% lift
Pikitup’s Mayoral Committee Item 78 sets a 6.2% increase across domestic refuse charges, the City Cleaning Levy (non-residential properties), landfill disposal, safe disposal and non-sectional title properties for the financial year. Properties valued at R350,000 and below, as well as registered indigent households, remain exempt from the refuse charge. The increase reflects the headline-inflation forecast for FY2026/27 and the service-delivery cost drivers expected by the entity.
The combined household impact — an illustrative monthly budget
| Line item | June 2026 estimate | July 2026 estimate | Monthly delta |
|---|---|---|---|
| Electricity (600 kWh, prepaid high) | R1,950 | R2,118 | +R168 |
| Water (20 kl, prepayment) | R720 | R810 | +R90 |
| Sanitation (sectional title average) | R380 | R422 | +R42 |
| Refuse (mid-band domestic) | R290 | R308 | +R18 |
| Total | R3,340 | R3,658 | +R318 |
Worked at the sectional-title scheme level, an estate of 120 units carries roughly R38,000 of additional monthly utility recovery exposure from 1 July 2026 alone. Trustees and managing agents who under-recover on these line items at the start of the new tariff cycle compound an arrears problem that is structurally harder to recover later in the financial year. Coverage by Property Wheel and EWN reflects the same affordability concern, while Engineering News flags the ongoing budgetary pressure on the City that sits behind the increase.
How Mosaic Wallet absorbs the increase
Mosaic Wallet is a prepaid utility funding and consumption platform designed for South African households, sectional title schemes and rental portfolios. Three operational features matter directly in the FY2026/27 tariff environment:
- Real-time consumption visibility. Each Mosaic Wallet account shows daily water, electricity and gas consumption against the approved tariff bands. A household that can see the moment it crosses into the >20kl water band — or the high-block electricity range — can change behaviour before the next billing cycle, not after the surprise.
- One-tap PayShap top-ups. The Wallet accepts instant PayShap and EFT funding from any South African bank. Residents budget once at the start of the month, top up the Wallet, and the daily debit happens automatically at the prevailing metered rate — including the 1 July 2026 tariffs.
- Per-property utility recovery. For landlords and sectional title schemes, Mosaic Wallet records every kilowatt-hour and kilolitre at the meter and posts the matching rand value to the property ledger. Trustees and managing agents see the impact of the FY2026/27 increases the moment the new tariff goes live, with no manual reconciliation lag.
For the broader operating model that sits behind the Wallet, see our pillar guide on prepaid utility management in Johannesburg and the Mosaic Wallet product page.
What residents and trustees should do before 1 July 2026
- Audit the May or June 2026 utility bill to baseline current consumption against the existing FY2025/26 tariffs.
- Apply the FY2026/27 percentage increases per line item to derive the expected July 2026 spend.
- For sectional title schemes, raise the matter at the next trustee meeting and confirm that the levy-recovery rate, special-levy reserves and prepaid utility wallet funding policy account for the increase from 1 July 2026.
- For rental portfolios, update tenant-onboarding utility-funding guidance to reflect the new average household cost.
- For Mosaic Wallet users, raise the recurring top-up amount on or before 1 July 2026 to prevent service-interruption events at the new tariff.
Frequently asked questions
When do the new City of Johannesburg tariffs take effect?
The approved FY2026/27 tariffs take effect from 1 July 2026, the first day of the City of Johannesburg’s new municipal financial year.
Why is the electricity increase 8.63% when NERSA approved 9.01%?
City Power held the network capacity charge flat for residential prepaid (high) and residential conventional 60A customers, which limits the customer-facing average to 8.63%. The energy rate per kilowatt-hour still moves in line with the NERSA-approved Eskom bulk-purchase cost increase of 9.01% for FY2026/27.
Is the first 6 kilolitres of water still free?
Yes. The first 6 kilolitres per month remains free for residential customers under both the conventional and prepayment meter schedules, in line with the City of Johannesburg’s Free Basic Water policy carried forward into FY2026/27.
Which households are exempt from the Pikitup refuse charge?
Properties valued at R350,000 and below, as well as registered indigent households, remain exempt from the refuse charge under Pikitup’s FY2026/27 tariff schedule. Indigent households are rebated in line with the City’s Expanded Social Package rebate policy.
How does Mosaic Wallet help households absorb the increase?
Mosaic Wallet provides real-time consumption visibility, automated daily debit at the prevailing metered rate, one-tap PayShap top-ups, and a per-property ledger view for landlords and sectional title trustees. Together, these features convert what is normally a surprise end-of-month bill into a predictable daily spend that households can budget for.
Mosaic Home Services offers prepaid electricity, water and gas on a single wallet. Learn more about Mosaic Wallet.