Feedback on proposed electricity tariff increase

Feedback on proposed electricity tariff increase

As the cost of living continues to rise, along with increases in fuel prices, concerns about affordability are being felt across all communities. The survey on Overstrand’s proposed 8.5% electricity tariff increase for the 2026/27 financial year reflects these concerns, with many residents highlighting the pressure on their household budgets.

A total of 1 604 residents took part in the survey, offering insight into how the proposed tariff adjustment could affect households and businesses across the Overstrand area.

The overall sentiment from the survey points to widespread concern and uncertainty. While some residents provided neutral or factual input, many expressed frustration and financial strain, with very few indicating support for the proposed increase.

The feedback shows that rising electricity costs are becoming increasingly difficult for many households to manage, particularly in the context of other everyday expenses.

The survey also highlights a need for clearer communication and greater transparency, as many residents indicated they were not aware of the proposed increase before participating.

From the open comment section, valuable suggestions were received from residents. These inputs help us better understand community needs and possible solutions.

Proposals included:
* Reviewing basic and capacity charges
* Addressing illegal connections
* Strengthening debt collection
* Providing support or protection for pensioners
* Expanding solar and feed-in options
* Improving transparency in how tariffs are calculated

What residents told us

1. Awareness of the proposed increase

Nearly 60% of respondents said they were not aware of the proposed increase before taking part in the survey. This points to a clear need for improved communication.

2. The tariff system is difficult to understand

Only 16% of respondents indicated that they fully understand the tariff structure. Many described the combination of basic charges, capacity fees and multiple tariffs as confusing and, in some cases, unfair.

3. Expected impact on households and businesses

Nearly 80% of respondents expect the increase to have a significant financial impact.

Concerns raised include:

• Pensioners who cannot absorb further increases
• Low-income households at risk of falling into debt
• Middle-income families already under pressure
• Small businesses concerned about sustainability
• Many respondents linked rising electricity costs to broader increases in food, fuel and transport.

4. Concerns about fairness
A recurring concern is that paying customers feel they are carrying an unfair share of the burden.
Residents raised issues such as illegal connections, debt write-offs, free basic units, and a lack of enforcement. There is a strong call for fairness and accountability across all users.

5. Impact on pensioners
Pensioners were among the most vocal respondents. Many indicated that their income does not keep pace with rising costs and expressed concern about their ability to cope with further increases. Some noted that they are already having to make difficult choices between essential expenses.

6. Preference for an inflation-linked increase
Many residents indicated that any increase should be aligned with inflation. With CPI at approximately 3.5%, suggestions generally ranged between no increase and a maximum of 3-5%, with the current proposal viewed as too high.

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