Johannesburg – South Africans will have to pay more for electricity after the National Energy Regulator of South Africa (NERSA) on Thursday approved an 18.65% tariff hike.
The regulator granted Eskom the hike amid debilitating Stage 6 load-shedding imposed by the struggling power utility.
Eskom had initially applied for a 32% tariff hike.
NERSA said it considered various issues before it made the final decision on Eskom’s revenue application for the 2023/24 financial year.
The regulator granted Eskom an 18.65% hike and 12.47% for the 2024/25 financial year.
NERSA Chairperson Thembani Bukula said changes to electricity prices were expected to take effect in April.
The electricity tariff hikes have sparked angry reactions across the country, with OUTA asking if, “this decision be the turning point for South Africans?”
Reacting to the massive tariff hike, Cape Town Mayor Geordin Hill-Lewis branded Eskom’s NERSA-approved 18.6% price hike as “unfair, unaffordable, and unjust”.
“South Africans are being asked to pay for corruption and mismanagement at Eskom in the most unfair, unaffordable and unjust way,” said Mayor Hill-Lewis.
“Eskom has alternative ways to raise funds: by reducing their bloated payroll, by cutting suppliers who are over-charging especially for sub-standard coal, and by ending corruption, including recovering state capture loot.
“In Cape Town, we are working flat out to end our Eskom reliance, diversify energy supply to more affordable power sources, and end load-shedding over time.
“We remain determined to fight for ordinary Capetonians, a staggering number of whom are struggling under the rising cost of living.”
The Democratic Alliance (DA) said the decision by NERSA, “to increase electricity tariffs by 18.65%, despite consumers spending over 120 days in darkness in 2022, with indefinite stage 6 load-shedding already in 2023, is officially sanctioned daylight robbery against consumers”.
DA Shadow Minister of Public Enterprises Ghaleb Cachalia said it was “time for all South Africans to stand up and say ‘enough is enough'”.
Cachalia added: “DA Leader, John Steenhuisen, today wrote to President Cyril Rampahosa, requesting an urgent meeting about Eskom and the growing power crisis.
“This tariff increase is now pouring fuel on the fire and the DA believes that this can’t go on any longer.”
The GOOD party said Eskom’s dire finances continue to burden already struggling South Africans, “this time with a 18.65% hike in electricity tariffs for the 2023/24 financial year and a 12.74% increase in the year thereafter”.
GOOD Secretary General Brett Herron said: “The tariff hike is once again a reminder that Eskom needs to implement an effective financial plan for the maintenance and rehabilitation of its power plants, while increasing its generation capacity to provide sufficient power to South Africa, currently in the grips of stage 6 power cuts”.
The Economic Freedom Fighters (EFF) had earlier called for a rejection of the proposed tariff increases.
After the announcement of the tariff hike, EFF spokesperson Leigh-Ann Mathys said: “The national energy regulator has failed in its mandate to uphold the energy prices.
“Further, the national energy regulator over the past 10 years has already allowed a 753% increase in electricity costs.
“So, there is nothing fair about the increase to power costs, given the material conditions in our country.”
