\u201cIf we do not get them, Eskom doesn\u2019t get cost-reflective tariffs, then in three to four years\u2019 time, the entity will be back at Treasury\u2019s door with a begging bowl, asking for more<\/strong>, because its costs will be higher than its revenues. You don\u2019t need to be a business wizard to understand that,\u201d De Ruyter said.<\/p>\n\n\n\n How electricity tariffs have changed in South Africa<\/strong><\/p>\n\n\n\n Energy regulator Nersa granted Eskom an 18.65% increase in tariffs for direct customers, effective April 2023, with another municipal electricity tariff increase of 15.1% taking effect in July 2023.<\/p>\n\n\n\n The price hikes will take the average electricity tariff in South Africa from just over R1.46 per kWh to around R1.84. The average reflects the national average \u2013 urban customers who consume power in higher blocks will pay significantly more than this.<\/p>\n\n\n\n In the CPI basket, electricity prices also far outstrip headline inflation, coming in at an average of 14.5% across all provinces.<\/p>\n\n\n\n According to an economic bulletin published<\/a> by the South African Reserve Bank (SARB) \u2013 written by economists Zaakirah Ismail and Christopher Wood \u2013 since load shedding started in 2008, electricity has increased by a shocking 450%<\/strong>, drastically outstripping CPI by 352%, with inflation recorded at 98% over the same period. <\/p>\n\n\n\n Despite this, Nersa also granted Eskom a further 12.74% tariff increase effective in April 2024.<\/p>\n\n\n\n According to the economists, this massive increase in tariffs results from the significant impacts on Eskom\u2019s capital expenditure (due to decades of neglect of its fleet) and declining sales as consumers move away from the utility\u2019s services. Other price pressures come from Eskom\u2019s operating costs and municipal pricing.<\/p>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/12\/Screenshot-2023-08-30-094952.png\")
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