Homeowners in two Mpumalanga municipalities face monthly charges for using boreholes or living off the electricity grid, reducing the savings from their investments.
Since 1 July 2026, the City of Mbombela has charged homeowners over R400 per month for each borehole connected to their property's water system.
Meanwhile, Thaba Chweu charges just over R580 a month for properties that aren't connected to its electricity network, BusinessTech reports.
For accountants across South Africa, these charges are a reminder to check local tariffs when advising homeowners, landlords, and businesses.
Unexpected municipal fees could affect their budgets and whether installing solar panels or boreholes is still worth the investment.
Mbombela's borehole fee costs around R470 a month
According to Mbombela's 2026/27 sewerage tariffs, homeowners must pay just over R400 per borehole, while businesses pay nearly R880. These amounts exclude VAT, bringing the residential charge to around R470 a month, or R5,600 a year.
AfriForum has asked the municipality to explain how it calculated the fee, especially since homeowners already pay a basic monthly sewerage charge of nearly R100.
Leana van der Merwe, technical manager at CIBA, says accountants need to consider these extra costs when calculating how much clients actually save. “Just because you install solar panels or a borehole doesn’t mean all your costs disappear,” she says.
For example, if a homeowner saves R800 a month on water, the borehole fee reduces their savings to around R330 after VAT. This also hasn’t taken installation and maintenance costs into account, which could further reduce the savings.
“On top of this, these municipal charges could increase every year,” Van der Merwe adds. This means homeowners could see their savings shrink each year, making it take longer to recover the money they spent installing their borehole.
Have a look at our guide to scenario planning for 2027 budgets to learn how to account for changing costs in your clients' financial forecasts.
Landlords should check who pays the borehole fee
For clients who own rental properties, Van der Merwe says accountants should first check whether the borehole charge is correct and applies to the property.
“We shouldn’t just assume that because it’s on the municipal bill, it must be right,” she says.
Next, check the lease agreement to see whether the landlord or tenant is responsible for paying the fee. If the landlord can't pass it on to the tenant, the additional cost could reduce their rental income by around R5,600 a year.
Thaba Chweu charges off-grid homes over R580 a month
In Thaba Chweu, homeowners can face a monthly electricity charge even if their properties aren't connected to the municipal power grid.
The National Energy Regulator of South Africa (NERSA) approved a monthly charge of just over R580 for properties where the electricity network is available but the home isn't connected to it.
Homeowners who remain connected to the grid but use solar power also pay a separate basic charge of around R320 a month.
AfriForum has challenged the off-grid charge, arguing that homeowners shouldn't have to pay for an electricity connection they don't use. It has questioned whether the fee is lawful and threatened to take the matter to court.
However, Thaba Chweu argues that the fee covers the cost of making electricity connections available, rather than being a tax on solar power, according to a Business Day column.
Other cities and countries also charge for alternative systems
Other municipalities also charge homeowners for alternative water or electricity systems.
For example, Mangaung charges R70 a month for boreholes on properties without municipal water meters. Meanwhile, Cape Town has a fixed electricity charge of around R420 a month for homeowners on its Home User tariff, regardless of how much electricity they use.
These charges differ between municipalities, so homeowners shouldn't assume they'll stop paying municipal fees when they switch to alternative systems.
Similar charges have also caused controversy overseas. Spain introduced a tax on electricity generated for personal use by solar panels in 2015, but removed it in 2018. In South Africa, these municipal charges differ depending on where a property is located.
Don't ignore charges that are being disputed
Van der Merwe warns that accountants should still include these fees in their clients' budgets, even while their legality is being challenged.
For clients elsewhere in South Africa, accountants should check the municipality's latest tariff schedule and look for fixed electricity, water, sewerage, or borehole charges that could affect their budgets.
If a charge is valid and must be paid, it should normally be recorded as an expense. Any unpaid amount should also be recorded as a liability.
However, if the charge is being disputed, accountants need to assess the circumstances before deciding how to record it.
Van der Merwe recommends that clients challenge questionable fees formally, keep records of all correspondence, and continue paying any amounts that aren't in dispute.
“Just because we’re challenging a charge doesn’t mean we can pretend it doesn’t exist,” she says.