The National Energy Regulator of South Africa (NERSA) on Thursday approved a tariff increase of 9.61% for Eskom, but the-above-4.9%-inflation hike can still be challenged in court.
NERSA chairperson Nhlanhla Gumede said the hike constitutes a 3.49% increase for the 2022/23 year, alongside legacy costs from previous years.
The chairperson said this increase was decided on to balance the interests of the economy, consumers, and the utility.
Gumede said the average electricity tariff rose from just over R1.33 per kWh to around R1.46.
The increase will take effect from 1 April 2022 for Eskom customers.
Municipal customers can expect to pay slightly more when new electricity prices come into effect from 1 July 2022.
The Democratic Alliance (DA) Kevin Mileham MP, who considers himself the shadow minister of mineral resources and energy, said his party was “very pleased”.
Mileham said the call by South Africans and the DA for NERSA to reject the proposed exorbitant electricity tariff increase “has been heard”.
Mileham added: “The announced tariff increase of 9.61%, while still high, is a long way off the 20.5% requested by Eskom”.
The DA MP said the increase, which may very well be challenged in court by Eskom, will still be a blow to South Africans who are already crippled under the skyrocketing cost of living.
“Fuel price increases, food and transport cost increases, consumer price increases, and all government tariffs are bombarding South Africans relentlessly,” said Mileham.
“The DA has spearheaded a national campaign to break the monopoly that Eskom enjoys and the back-breaking year-on-year tariff increases that residents have to endure.”
In Cape Town, Mayor Geordin Hill-Lewis, who is also a DA member, said: “Our message to Nersa was simple: Capetonians simply cannot afford above-inflation increases in the cost of electricity. Such increases are unfair, unaffordable and unjust. This remains our view.
“Despite a 544% increase in the average price of electricity from 2007 to 2021, South Africans have seen a continued increase in load-shedding and energy insecurity.”
