The Pietermaritzburg Economic Justice and Dignity (PMBEJD) group says that Eskom’s double-digit price hikes\u2014and the subsequent hikes from municipalities across the country\u2014are leaving households broken, having to choose between having power or having food to eat.<\/p>\n\n\n\n
Eskom implemented a 12.7% price increase on 1 April 2024, with municipalities across the country hiking their prices by similar amounts (ranging from 11% to 16%) from 1 July.<\/p>\n\n\n\n
According to the PMBEJD, while Nersa knows and regulates the overall annual Eskom hikes, prices are largely opaque, not sufficiently regulated, and very messy at the local municipal level, where all sorts of additional charges are included.<\/p>\n\n\n\n
This has resulted in households often receiving shocks to their electricity bills\u2014including in Johannesburg, where prepaid users were hit with a poorly communicated and completely unavoidable R200 per month “service and capacity” surcharge on their bills from July.<\/p>\n\n\n\n
But even on the national level, with Eskom’s fee hikes, the group said that rates far exceeded households’ ability to pay for them, and for most South Africans, electricity is unaffordable.<\/p>\n\n\n\n
This is a growing crisis in South Africa that the Department of Energy and Electricity has acknowledged.<\/p>\n\n\n\n
In July, Minister of Energy and Electricity Kgosientsho Ramokgopa said that electricity tariffs are increasing exponentially, and people can no longer afford electricity.<\/p>\n\n\n\n
He said the rate at which Eskom tariffs and municipal tariffs are increasing is unsustainable, describing it as \u201can untenable situation\u201d.<\/p>\n\n\n\n
\u201cWe are getting to a situation where your lower-to middle class \u2013 even your public servants \u2013 can no longer afford the cost of electricity in this country,\u201d he said.<\/p>\n\n\n\n
\u201cSo as we speak now, it\u2019s an affordability question; over a period of time, if you don\u2019t address it, it\u2019s a national security problem. Because people are \u2018not going to just fold their arms\u2019.\u201d<\/p>\n\n\n\n
Higher electricity prices also have inflationary pressure, which impacts the cost of goods and the cost of doing business.<\/p>\n\n\n\n
\u201cThis is a problem that is likely to become acute over a period of time, and needs to be addressed urgently,\u201d he said.<\/p>\n\n\n\n
Ramokgopa said this week that the department and the South African Local Government Association (SALGA) are looking at ways to implement an electricity pricing plan in collaboration with Eskom and local municipalities.<\/p>\n\n\n\n
However, Ramokgopa stressed the importance of energy regulator Nersa in finding solutions, saying that, as an independent authority, Nersa is responsible for protecting consumers and examining proposed tariff increases from Eskom and municipalities.<\/p>\n\n\n\n
Ironically, Nersa frequently undercuts Eskom’s tariff applications\u2014for example, the power utility applied for a 38% tariff hike in 2023 but was only granted 18%\u2014and has been trying to rework methodologies to stop Eskom from allegedly ‘abusing’ the current system.<\/p>\n\n\n\n
The utility is reportedly looking for yet another electricity hike of 36.15% and 44% for 2025<\/strong><\/a>.<\/p>\n\n\n\n