HAVE YOUR SAY ON ESKOM’S PROPOSED 36% TARIFF HIKE

Tue 24 September 2024:

Eskom’s proposed electricity tariff increases for the next three financial years, have gone out for public comment, EWN reported.

The power utility wants to hike up tariffs for direct customers by around 36% next year and then by 12% and 9% in the 2027 and 2028 financial years respectively.

Following an almost 13% hike this April, the proposal courted significant controversy with a petition launched by the Democratic Alliance (DA) to try and block the hike.

So far it has garnered more than 100,000 signatures.

According to the consultation paper, the National Energy Regulator of South Africa (NERSA) published on its website, Eskom’s revenue application amounts to R446 billion for the 2026 financial year, R495 billion for 2027, and R537 billion for 2028.

NERSA notes the major drivers as primary energy, operating costs, independent power producers, international purchases and depreciation.

The window for written comments to be submitted opened on Monday and is set to close on 1 November 2024 after which NERSA said it would “collate all comments received, which will be taken into consideration when the decision is made”.

Public hearings will also be held for all nine provinces, from 18 November until 6 December.

NERSA plans to publish its decision with the reasons in March next year.

The new tariff hikes are expected to take effect a month later, on the 1 April.

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“An untenable situation”

Minister of Energy and Electricity Kgosientsho Ramokgopa has called the price hikes – including the proposed 36% hike for 2025 – a growing crisis, and that the government would be looking for a way to mitigate this.

In July, he said the rate at which Eskom tariffs and municipal tariffs are increasing is unsustainable, describing it as “an untenable situation”.

“We are getting to a situation where your lower-to middle class – even your public servants – can no longer afford the cost of electricity in this country,” he said.

“So as we speak now, it’s an affordability question; over a period of time, if you don’t address it, it’s a national security problem. Because people are ‘not going to just fold their arms’.”

Higher electricity prices also have inflationary pressure, which impacts the cost of goods and the cost of doing business.

“This is a problem that is likely to become acute over a period of time, and needs to be addressed urgently,” he said.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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