GOVERNMENT CONSIDERS INTERVENTION IN ESKOM ELECTRICITY TARIFF HIKE APPLICATION

Thu 21 November 2024:

Government is preparing to present an intervention regarding Eskom’s proposed tariff hike.

This according to Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, who briefed the media on Wednesday.

The power utility has asked the National Energy Regulator of South Africa (Nersa) to approve its multi-year price determination which would mean, for direct Eskom customers, a 36.15% electricity tariff hike for 2025/26, an 11.81% increase in 2026/27 and a 9.10% rise in 2027/28 – sharply bringing into focus electricity affordability and upping the cost of living.

Nersa is currently holding public hearings on Eskom’s application.

“As government, we will be fashioning interventions to ensure that we provide relief. It’s still a process that is underway inside government. Before Nersa makes that determination, we’d have made our submissions.

“I want to say – with a degree of confidence – that we will get to a situation where we don’t realise a 36, 40% tariff increase. It should be something significantly lower than that. [This will be] taking into account the need for the industry to be competitive; the pressures that the households are experiencing,” he said.

The Minister reminded South Africans that the seventh administration has committed to ensuring that “we fight poverty and reduce the cost of living”.

“We know that the cost of utilities – electricity and water – is a big component of the spending of households and in fact, it’s more disproportionate when you get to low income households.

“I want to say to the country that: rest assured, we will be making interventions that will provide significant amount of relief. What that percentage [tariff increase] that will be, Nersa will make that determination,” he said.

Ramokgopa insisted that despite government’s intervention, “we will not undermine the ability of Eskom to continue to operate”.

“Some of the assumptions and basis of the application of Eskom has got some justification.

“[However] we think we can do both…Eskom’s ability to execute on its mandate and on the other side, the need for us to provide some degree of relief to households and industry. I am confident, we can find that,” he said.

The Minister implored South Africans to continue making their voices heard at Nersa’s public hearings on Eskom’s proposed tariff increases.

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Public hearings continue as follows:

20 November at the ETC Conference Centre, Spondo Street, Gqeberha, Eastern Cape.
21 and 22 November at the Transnet National Ports Authority, N-Shed Passengers Terminal, Quayside Road, Durban, Kwa-Zulu Natal.
25 November at the Bon Hotel Bloem Plaza, East Burger Street, Bloemfontein, Free State.
27 November at the Mbombela Civic Centre, 1 Nel Street, Mbombela, Mpumalanga.
29 November at the Jack Botes Hall, 14 Bodenstein Street, Polokwane, Limpopo.
2 December at the Protea Hotel, Barend and Margaretha Prinsloo Streets, Klerksdorp, North West.
3 and 4 December at the Eskom Academy of Learning, Dale Road, Midrand, Gauteng.

“What is important is that all of us…let’s subject ourselves to the [Nersa hearings]. So that we allow Nersa the opportunity to have the benefit of the mulitiplicity of views,” Ramokgopa said.

Nersa’s decision on Eskom’s application is expected to only be made on 20 December this year.

– SAnews.gov.za

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