Eskom’s 36.15% price increase sparks outrage: Petitions launched

As financial pressure continues to bear down on millions of South Africans due to the relentless rise in the cost of living, Eskom’s plans to increase electricity tariffs for the coming year have ignited further anxiety. The state-owned power utility is pushing forward with proposals that could see significant increases in electricity prices, potentially affecting households and businesses across the country.

Eskom has applied for total revenues of R446 billion for the financial year 2026, R495 billion for 2027, and a staggering R537 billion for 2028.

This translates to a proposed average price increase for direct customers of 36.15% from 1 April 2025 to 31 March 2026, 11.81% for the period from 1 April 2026 to 31 March 2027, and a further 9.10% increase from 1 April 2027 to 31 March 2028. These figures mark a significant escalation in costs, which is bound to have a direct impact on the pockets of every citizen and business entity

This proposal follows the publication of Eskom’s Multi-Year Price Determination (MYPD) 6 revenue application by the National Energy Regulator of South Africa (NERSA). This revenue application covers the financial years from 2026 to 2028. Eskom has explained that, as required by the regulatory process, it must submit its revenue needs to NERSA in order for a determination to be made. According to Eskom, it followed the Multi-Year Price Determination (MYPD) methodology as outlined by NERSA.

Moreover, Eskom clarified that NERSA will make a final decision on the revenues the power utility can collect after conducting its own thorough analysis, including a series of public consultations. Eskom further argued that its application is essential for improving the utility’s financial sustainability, stating that the move towards cost-reflective pricing will play a vital role in ensuring the continued operation of Eskom’s Generation, Transmission (NTCSA), and Distribution services.

Furthermore, Eskom noted that future applications will consider the need to fully cover capital costs while minimising the impact on taxpayers.

Once NERSA makes its decision on Eskom’s revenue application, it will then determine the tariffs to be implemented from 1 April 2025. Eskom has reiterated that it can only implement tariff decisions made by NERSA, emphasising its adherence to the regulatory framework.

Calib Cassim, Eskom’s Chief Financial Officer, commented on the process, saying: “We are entering the next phase of the regulatory process, where NERSA will conduct an extensive public consultation on Eskom’s revenue application, and we urge as many stakeholders as possible to participate. This will allow NERSA to determine a key component in the funding of a consistent electricity supply that will drive economic growth and improve our quality of life for years to come.”

Additionally, Cassim further explained that, in making its decision, NERSA will consider the affordability of electricity for vulnerable groups, including indigent customers and certain industrial sectors. “Eskom’s revenue application is based on the costs it will incur to efficiently provide electricity to its customers. This is a critical element in ensuring that Eskom continues to provide reliable electricity services while improving its financial sustainability through a move towards cost-reflective pricing,” Cassim concluded.

As Eskom continues to push for higher electricity tariffs, a number of civil rights organisations and political parties have voiced their opposition, urging South Africans to take action against the proposed price hikes.

The Congress of South African Trade Unions (COSATU) has been outspoken in its opposition to Eskom’s proposal, calling on NERSA to reject the power utility’s request for a 36.15% tariff hike.

In a statement, COSATU national spokesperson Zanele Sabela described the proposed increase as “nine times the current rate of inflation,” stating that it is “clearly unaffordable and will push businesses and citizens, particularly the working class and poor communities, into further financial distress.”

Sabela further elaborated on the growing struggle faced by South Africans due to the rising cost of living. “South Africans have been battling the increasing cost of living for some time now, but the working class and poor specifically have been struggling to provide even the bare minimum for their families. Although the slight drop in the repo rate last week might lead to a reduction in food prices, affordability remains a major concern. For families who couldn’t afford to put food on the table before last Thursday, the situation is unlikely to improve anytime soon. Now, with the proposed double-digit electricity hike, the burden will only get worse,” said Sabela.

Additionally, COSATU also pointed out that businesses would be hit hard by the significant rise in energy costs. The union warned that if NERSA grants Eskom’s application, the tariff hike would cripple economic growth and set the country back.

With South Africans expected to bear the brunt of these proposed tariff increases, AfriForum has underscored the importance of public participation in the consultation process, stressing that now is the time for citizens to make their voices heard.

The organisation has called for written comments to be submitted by 1 November 2024.

Addressing the proposed 36.15% increase set for 2025, Morné Mostert, Manager of Local Government Affairs at AfriForum, expressed outrage at the expectation for consumers to cover the cost of years of Eskom’s mismanagement and corruption. “Consumers cannot be expected to foot the bill for Eskom’s years of misappropriation and mismanagement. AfriForum will actively participate in the process and will continue to support communities to ensure fair electricity rates. We will also closely monitor NERSA’s regulatory process and will take action if any unfair practices are identified,” said Mostert.

Building on this, AfriForum has promised to keep the public informed as more details about the consultation sessions become available. Additionally, the organisation is running a petition against the proposed tariff increases, inviting the public to make their voices heard by signing said document.

In parallel, the Democratic Alliance (DA) has also launched its own petition, encouraging South Africans to stand up against the planned price hike.

The DA argues that the proposed increase will force millions of South Africans to make “an impossible choice between food and electricity.” The political party further criticised Eskom’s mismanagement, stating: “We refuse to accept a future where electricity is unaffordable for the average household. To add insult to injury, Eskom has been granted permission to overcharge consumers to recover revenue shortfalls.”

The DA’s petition has already gathered over 100,000 signatures, with the party securing an urgent debate in Parliament to address the issue. The DA has made it clear that it will not allow Eskom to continue passing its inefficiencies onto the public, saying, “Eskom cannot keep making ordinary citizens pay for its mismanagement.”

To participate in the AfriForum petition, click here.

To participate in the DA petition, click here.

Written comments on Eskom’s proposal can be emailed to NERSA at the following email address:  [email protected] by 16:00 on 1 November 2024.

With AfriForum, COSATU, and the DA all raising the alarm over the impact these price hikes will have on South Africans, and with petitions circulating in a bid to halt the increases, it’s time to ask: What are your thoughts on this critical issue?

Share your views in the comments below.