A dispute has arisen regarding electricity tariffs in Cape Town between the Patriotic Alliance (PA) and the Democratic Alliance (DA). The PA accuses the city administration, led by the DA, of attempting to shift the blame for high electricity costs onto the company Eskom.
PA mayoral candidate Cheslyn Daniels accused DA council member Angus Mackenzie of using Eskom as an 'excuse' to explain the city's electricity prices ahead of local elections. Daniels asserts that the City is the entity setting the tariffs that residents ultimately pay, including fixed service and wiring charges.
He stated: 'The City, led by the DA, determines the tariff structure, adds service and wiring charges, approves them through its budget, and collects the money.'
However, Mackenzie countered, insisting that Eskom remains the primary factor influencing the cost of electricity. He emphasized: 'Cape Town does not control the price of electricity produced and sold by Eskom.'
Mackenzie noted that approximately 70% of the City's municipal tariff revenue goes towards purchasing wholesale power from Eskom. He also pointed to Eskom's rising costs and called for increased competition in the energy market.
The City reported that the municipal tariff for Eskom increased by 9.01% for the 2026/27 financial year, while Cape Town limited the average increase for private households to 6.64%. According to the City's 2026/27 budget documents, the overall average electricity tariff increase was 6.67%, with different consumers being affected differently.
Mayco's energy member, Xanthe Limberg, rejected Daniels' assertion that the City's tariff structure is the main independent factor driving electricity cost increases. She stated: 'This claim is completely false.'
Limberg explained that the tariff includes both a fixed and a consumption component; the fixed part covers costs that remain unchanged regardless of consumption volume. She added that about 70% of the tariff revenue goes to wholesale power supply, and the remainder is used to cover energy services and infrastructure. 'All revenues are used to purchase wholesale electricity from Eskom and cover the costs of providing services, including maintenance of electrical infrastructure and the grid.'
Nevertheless, Limberg reported that the City is taking steps to reduce its dependence on Eskom. In August, it signed the first power purchase agreements with independent producers for a capacity of 70 MW under a program targeting 200 MW. The City claims these agreements are 19%–21% cheaper than current Eskom rates over 20 years.
Daniels stated that under his leadership, the PA will focus on providing financial assistance to struggling households. This includes proposed municipal debt write-offs and a three-month deferral of tax payments for pensioners. He demanded that Mackenzie and the City publish data on how much electricity is purchased from Eskom, how much is collected from residents through tariffs and fixed charges, and how those funds are spent.
Mackenzie insists that eliminating Eskom's monopoly and increasing competition are key to reducing electricity costs. This conflict is escalating amid political parties preparing for upcoming local elections, where electricity availability is becoming one of the main issues for the public.