Eskom’s Proposed Tariff Hike: A Heavy Burden on South Africans

Johannesburg—City Power has raised serious objections to Eskom’s proposed tariff hikes over the next three years, calling the increases unaffordable and unsustainable for municipalities and customers alike. In a formal submission to the National Energy Regulator of South Africa (NERSA), City Power has suggested that any increase should not exceed 11% per year. However, even this figure has been met with resistance from citizens struggling in an already tough economic climate.

Eskom’s proposal includes a shocking 44% increase in electricity prices, a figure that has sparked widespread outrage. Municipalities are already grappling with substantial debt owed to Eskom, and further increases could cripple their financial stability.

The General Manager for Tariffs at City Power emphasized that this hike would pose a significant challenge for households and businesses, questioning the utility’s understanding of the financial realities faced by ordinary South Africans. With over 7 million unemployed citizens out of a population of 64 million, many are asking: Where does Eskom expect people to find this money?

The proposed hikes, coupled with the country’s soaring unemployment rate and escalating cost of living, highlight the urgent need for a balanced solution that ensures Eskom’s sustainability without plunging citizens deeper into financial despair.

What’s Next?

The ball is now in NERSA’s court. South Africans will be watching closely as the regulator reviews these proposals and considers feedback from stakeholders, including City Power. In the meantime, citizens and businesses alike are bracing for what could be a turning point in the country’s energy landscape.