Soweto residents against 36% electricity hike

'Eskom proposal unaffordable, unrealistic'

Mxolisi Khumalo, whose monthly electricity expense is currently R500, will have to pay an extra R180 next year for the same amount of units should the National Energy Regulator of SA (Nersa) accept Eskom's proposed 36% tariff hike. 

This echoes the sentiments of many of the residents who attended the hearings in Orlando West, Soweto, on Tuesday.

Gauteng municipalities also agree with the residents and have collectively rejected the tariff increase, saying it is excessive and unjustifiably high.

The municipalities include the City of Tshwane, City of Johannesburg, City of Ekurhuleni and the Sedibeng district.

Khumalo said he used to buy a prepaid voucher for just over R200 and it would last him for a month, but this year his electricity expenses have gone up to R500.

The potential for a further increase of this magnitude is not only unsustainable but also morally unacceptable.City Power spokesperson Isaac Mangena

He said Eskom's proposed tariffs would plunge him into poverty and debt as his financial responsibilities have increased. 

"I pay a car installment and buy groceries, and a full tank of my car costs about R2,000. The proposed tariffs will affect me badly," he said. "I also send money to my grandparents in Mpumalanga. I'm hardly left with any money before my next pay day."

Khumalo was among dozens of community members who attended a public hearing by Nersa yesterday, which was aimed at receiving submissions in relation to the new electricity hike plans by Eskom. The meeting, held at Uncle Tom's Hall in Orlando West, was attended by union representatives and other interested parties who are mostly against the 36% increase. 

According to the municipalities, that application, if granted, would translate to a 36.15% tariff increase from April 1 2025 to March 31 2026; 11.81% from April 1 2026 to March 31 2027; and 9.10% from April 1 2027 to March 31 2028.

“The recent implementation of a 12.75% tariff increase has already placed immense financial strain on our residents, pushing many to the brink of economic hardship. The potential for a further increase of this magnitude is not only unsustainable but also morally unacceptable,” said City Power spokesperson Isaac Mangena on behalf of the municipalities.

The municipalities said the proposed increase, which could reach an alarming cumulative 66% over the application period, would pose a significant threat to the economic stability and social fabric of the communities they serve. 

Tshepo Mposula, a community activist, said the 36% was unrealistic.

"It will not be affordable to our residents. We know that our people are already struggling financially. Eskom is not in touch with the reality of our people on the ground." 

Nersa spokesperson Charles Hlebela said the consideration towards Eskom’s application remained a challenge and they would need to balance Eskom's interests so that the utility is able to do its work and the interest of the public.

Nersa will make a final decision on December 20. 

“It’s a process and we need to analyse everything. The application raised points that the increase will cover ... which is primarily energy cost, operation cost and independent power producers,” Hlebela said. 

National Association of Automotive Component and Allied Manufacturers representative Beth Dealthy said their report shows that 80% of the automotive companies would seek alternative energy sources. 

She said 70% of their members said the hike will result in decreased revenue. 

Increase Facts

• In December 2017, Nersa denied Eskom a 9.9% tariff hike application and instead approved 5.23%;
• In March 2019, Nersa approved Eskom's increases of 17.1% for 2019/20, 15.4% for 2020/21 and 15.5% for 2021/22;
• In 2022/23 Nersa approved an increase of 9.61%;
• The following year, electricity went up by 18.65%; and
• In 2024/25, the increase was 12.74%

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