The three-year budget forecast for Cape Town City indicates that by 2028/29, residents will have to pay 36% more for water and 24% more for electricity compared to the prices of the 2025/26 fiscal year.
Practically, this means that the cost of 100 units of electricity at June 2026 prices will be 124.50 rand starting from July 2028, and 100 units of water will cost 136 rand.
Despite Cape Town aiming to minimize price increases this year (the election year), the figures in its own budget forecasts suggest otherwise. The electricity tariff increase this year is 5.83%, and next year it will increase by another 8.49%, followed by another 8.39% in the subsequent year.
The projected national inflation rate is 3.4% this year, 3.2% next year, and 3.1% in 2028/29. Thus, accumulated inflation over three years will add about 10% to the cost of services, which is 14% less than the electricity price increase in Cape Town and a substantial 26% less than the proposed water price hike by the city.
These figures are criticized as unacceptable in a city that is becoming increasingly unaffordable for the vast majority of the population. These numbers highlight the priorities of the DA party, making services almost accessible only to the middle class, expatriates, property buyers, and Airbnb owners, but completely unmanageable for everyone else.
According to Cape Town Mayor Geordie Hill-Lewis, the city is working to improve electricity affordability by reducing dependence on Eskom. However, readers must judge the sincerity of Hill-Lewis's promises regarding affordability in light of his own proposed price increases.
In addition to water and electricity costs, rates also show a similar pattern characteristic of an election year: a 2% reduction in rand rates to compensate residents for an premature overall assessment that effectively forces them to pay more.
The DA calls for voters to support them this year but warns that next year they will increase rates by 6% based on increased property values, and in 2028/29 by another 8.13%.
Affordability, according to the author, is not just a slogan but a result of political decisions made during the budget compilation process. The DA elections benefit a very small group of people living and working in Cape Town.