Eskom tariff hikes to hit consumers hard!

THE National Energy Regulator of South Africa (Nersa) approved an 18,65% tariff increase for Eskom on Thursday, January 18, following a 32% multi-year price determination revenue application to the regulator.

The hike is effective from Monday, April 1, 2024, until March 31, 2025. This despite the fact that consumers are already paying high electricity bills as rolling blackouts worsen.

Regulator member for Electricity Regulation, Nhlanhla Gumede, said the decision to raise tariffs was difficult considering the financial restrictions that consumers are experiencing. Nonetheless, continuous blackouts and the challenging operational conditions that Eskom is currently experiencing have made an increase unavoidable.

South African Federation of Trade Unions (Saftu) spokesman Trevor Shaku said the hike is higher than the inflation rate and will ultimately widen energy poverty.

"So, if electricity grows by 12,74% while salary increases grow by only 4,7% or less, it suggests that workers' earnings are not keeping up with the rising cost of power. And this, of course, poses problems for consumers, who are, of course, workers and homes," he said.

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Eskom spokeswoman Daphne Mokwena said electricity price increases for local municipalities will take effect in July 2024.

"Local authority tariff rates increased by 12,72% between July 1, 2024 and June 30, 2025. Eskom informs consumers that from April 1, 2024, to March 31, 2025, all tariff rates, save the affordability subsidy charge, will rise by 12,74%," said Mokoena.

She said that the average rise in important industrial and urban tariffs would be 13,29% due to the increase in the affordability subsidy fee.

According to energy researcher Tshepo Kgadima, Nersa is no longer an independent energy regulator, as stated in the applicable statute.

"Politicians have historically relied on Nersa to grant unsubstantiated tariff rises, and electricity costs in South Africa have risen by a staggering 753% over the past 10 years," he said.