Johannesburg – Criticism is mounting regarding the recently approved electricity tariff increases of 12.74%, which are set to take effect in April this year.
The National Energy Regulator of South Africa (NERSA) has approved electricity tariff adjustments for the next three years: 12.74% for FY 2025/26, 5.36% for FY 2026/27, and 6.19% for FY 2027/28.
Eskom had originally requested a hefty 36 percent increase.
In response to the tariff increases, the General Industries Workers Union of South Africa (GIWUSA) warned that electricity costs are already overly burdensome for many households.
The union also raised concerns that these increases, which outpace inflation, would further worsen poverty levels.
“The working class cannot handle more hikes that will only exacerbate the economic hardships and energy poverty affecting 45% of the population,” said GIWUSA.
GIWUSA pointed out that the previous tariff increase in April 2024 had already placed immense pressure on the poor, working, and middle classes, many of whom are struggling with the rising cost of living.
The union noted that the escalating “municipality debt to Eskom has jumped from R35 billion in 2021 to R75 billion today” primarily because “a significant number of working-class individuals simply cannot afford their electricity bills.”
Rather than unfairly impacting the working class, GIWUSA urged NERSA to guide Eskom towards sustainable solutions, equitable pricing, and accountability.
“We need to continually mobilize communities and the workers’ movement for mass actions nationwide against the inevitable disappointment stemming from NERSA’s decision,” the union added.
GIWUSA’s views echoed those of the GOOD Party and civil rights organization AfriForum.
“South Africans already contend with some of the world’s highest electricity prices relative to their income,” stated the GOOD Party.
“It is unreasonable to keep demanding consumers pay more without addressing systemic inefficiencies.”
Nonetheless, the GOOD Party expressed relief that Eskom’s initial 36.15% tariff hike was rejected by NERSA.
The GOOD Party further added: “However, the 12.74% increase for the financial year 2025/26, along with 5.36% for 2026/27, and 6.19% for 2027/28 will significantly affect indebted consumers.”
“A 12.74% increase is substantially above the inflation rate.
“In GOOD’s perspective, it is the end-users who are shouldering the financial consequences of Eskom’s years of mismanagement.”
AfriForum announced plans to investigate the justification behind NERSA’s Eskom tariff increase.
The civil rights group stated it is ready to examine whether the announced power tariff increases from NERSA on Thursday (30 January 2025) meet all legal requirements.
However, AfriForum acknowledged: “These increases are significantly lower than the proposed hikes of 36.14%, 11.81%, and 9.1% over the upcoming three financial years.”
AfriForum emphasized that NERSA made its announcement just one day after the auditor general released Eskom’s audit report.
For the third consecutive year, Eskom received a qualified audit with findings.
“While it appears Eskom is currently enhancing its electricity delivery to consumers, responsible and accountable financial management remains a challenge for them,” remarked Morné Mostert, AfriForum Manager of Local Government Affairs.
“Last year, AfriForum urged the regulator during public hearings on the Eskom tariff increase application not to condone the recovery of unlawfully incurred expenses by Eskom.”
In contrast, the Ministry of Electricity and Energy expressed its “welcome” for NERSA’s announcement regarding the approved electricity tariff adjustments for the ensuing three years.
“We reaffirm our confidence in NERSA’s independence and integrity in fulfilling its mandate to ensure that electricity pricing supports Eskom’s financial sustainability while considering the economic realities faced by households, businesses, and industries,” the ministry stated.
The ministry asserted that these tariff adjustments would enable operational improvements and cost reductions that contribute to Eskom’s long-term financial viability while ensuring the affordability and reliability of electricity supply.
“We appreciate that these tariff adjustments take into account the need to relieve inflationary pressures on communities and businesses, thus helping stabilize the broader economic environment,” said Electricity Minister, Dr. Kgosientsho Ramokgopa.
Acknowledging that energy costs remain a significant concern, Minister Ramokgopa declared that he will continue to implement measures to assist vulnerable households and small businesses in managing rising electricity expenses.
“As part of our overall energy strategy, the government is committed to pursuing an energy mix that provides affordable, secure, and sustainable electricity for all South Africans, in line with our decarbonization commitments and long-term energy security goals,” the minister concluded.
“We encourage all stakeholders to engage constructively in shaping our energy future, ensuring a transition that is inclusive, fair, and responsive to South Africa’s developmental needs.”
The ministry emphasized its ongoing efforts toward achieving long-term energy affordability and reliability, ensuring that no South African is left behind in the nation’s energy transition.
