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Proposed tariff increases spark high-voltage debate

ON 3 September, Parliament will engage in a pivotal debate regarding the legality of the 40% electricity tariff increase recently sanctioned by the National Energy Regulator of South Africa (Nersa), says the not-for-profit platform, Dear South Africa (DearSA).

This significant hike, scheduled to take effect on 1 April 2025, has sparked widespread concern, as electricity is now projected to become the largest single expense for South African households in the coming months.

In addition, Eskom has announced plans to request an even more substantial electricity tariff increase of 36.15% for direct customers and 43.55% for those supplied by municipalities in 2025. This announcement has only intensified the debate surrounding the fairness and sustainability of these increases, according to DearSA. The organisation is appealing to the public to make their voices heard on the matter.

Despite producing less electricity today than in 2008, Eskom’s power costs have surged by over 450%. DearSA says the recent 40% tariff increase, justified by Eskom as a ‘make-up tariff’ to cover an R8 billion shortfall, has raised questions about the fairness of once again placing the financial burden on consumers.

Amid escalating food, fuel, and transport costs, these electricity tariff hikes represent a substantial blow to ordinary South Africans, many of whom already allocate more than one-third of their take-home pay to basic necessities.

“It is crucial for South Africans to voice their opinions on these tariff increases. Every submission to Nersa is legally recognised and could influence the outcome of this proposal. Participation in this discussion is essential to ensure that the decisions made by regulatory bodies like Nersa accurately reflect the needs and concerns of the public.

“These tariff hikes not only affect household budgets but also have broader implications for the sustainability of South Africa’s energy sector,” says DearSA.

Dear South Africa is a non-profit platform that allows the public to co-shape government policies, amendments, and proposals. The organisation has run many successful campaigns and has amassed a participant network of over 1.1 million individuals across the country and beyond.

It invites the public to comment on this matter at DearSouthAfrica.co.za before 31 August 2024.