Middle-income South Africans will pay significantly more for electricity this month as Eskom electricity tariffs increased by 15.63% on 1 April.<\/p>\n
This comes after the power utility and the National Energy Regulator of South Africa (Nersa) reached an agreement on Eskom\u2019s allowable revenue for the 2021\/2022 financial year.<\/p>\n
These price hikes are already filtering through to end-users in different municipalities, as seen with recent price adjustment notifications from areas like the City of Joburg.<\/p>\n
FNB said that it expects these hikes to hit middle-income households particularly hard, and that families will have to review their already stretched budgets to keep the lights on.<\/p>\n
The bank’s data shows that electricity spend is one of the largest spend categories for entry to middle-income customers, where the average electricity spend by a customer who holds its Entry Market bank account (Easy Account) increased by 9% (on average) between 2019 and 2020.<\/p>\n
The average monthly electricity spend by a middle-market (Gold Account) customer increased by 15%, while a mass-affluent (Premier Account) customer spent 14% more on electricity over the same period.<\/p>\n
It added that customers regularly turn to eBucks to supplement their electricity purchases, using roughly R4.5 million worth of eBucks for electricity purchases over the same period.<\/p>\n
“The reality is that all customers will need to factor a 15% increase on what they have been spending on electricity on a monthly basis,” chief executive of the Middle Market segment at FNB, Rob Gwerengwe.<\/p>\n
In the case of a household which spends roughly R500 per month <\/strong>on electricity, that household has to factor at least an additional R75<\/strong>\u00a0to what they have been paying.<\/p>\n “Unfortunately, this increase comes at a time when customers are heavily strained financially and these financially stressful times require every individual to scrutinise their budget a lot closer.”<\/p>\n New proposed tariffs for 2021\/22<\/p>\n Visit https:\/\/t.co\/lRVHqFvrPY<\/a> for more information. #PayAndBeLegal<\/a> pic.twitter.com\/AMKsvcHTkh<\/a><\/p>\n \u2014 Eskom Hld SOC Ltd (@Eskom_SA) April 7, 2021<\/a><\/p><\/blockquote>\n\n