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 for Eskom.
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 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”.
Brett Herron GOOD Secretary General 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 had earlier called for a rejection of the proposed tariff increases.
