The analysis was updated in 2024, when it emerged that the trend had worsened — with average prices increasing five times faster than inflation since 1996.

Now, with data updated to 2026, the picture has deteriorated further.

The graph below shows the overall trend from 1996 to 2026.

Note: The graph depicts overall average increases for residential consumers. Actual increases will differ across consumer types (residential, commercial, and industrial) and will vary between municipalities.

The key takeaways:

• Both water and electricity tariffs have increased dramatically faster than inflation over the past 30 years.

• Water tariffs have actually increased even faster than electricity tariffs — despite electricity price hikes receiving far more attention from the press and consumers.

• Over the period 1996 to 2026, electricity tariffs increased 5.3 times faster than inflation and water tariffs increased 6 times faster than inflation.

The conclusion is clear: the unsustainable trend of above-inflation price increases by municipalities has continued — and accelerated — over the past two years.

This is happening despite continued deterioration in municipal water and electricity infrastructure, which has led to an increase in local power failures and water supply disruptions across the country.

What this means for homeowners: Water heating accounts for 30–50% of a typical household electricity bill. As tariffs continue to climb at multiples of inflation, the cost of heating water with grid electricity will only grow. Reducing your reliance on the grid for hot water isn't just about savings today — it's about protecting yourself from a trend that shows no sign of reversing.

Sources: PowerOptimal — "The Price of Water and Electricity in South Africa: A Tale of Two Tragedies" (2021). Updated with 2026 data.