Eskom’s tariff hike slammed as consumers face above‑inflation shock
Eskom is seeking to implement an average tariff increase of 8.8% from April next year.
South Africa's utility company Eskom has announced a significant 8.83% increase in electricity tariffs for the 2027/28 financial year, which energy and electricity expert Kevin Mileham of the Democratic Alliance (DA) slammed as an "above‑inflation shock" for consumers. Mileham highlighted that direct employment costs at Eskom rose by around 24% from 2022/23 to 2024/25, while average remuneration increased by an additional 7% in 2025/26.
He urged the company to publicly account for its internal costs and show how savings would be passed to consumers, rather than requiring them to fund rising prices. Last year, Eskom sought a 36% tariff hike, followed by 11% and 9% increases in subsequent years. This recent tariff hike follows an 8.83% increase in April 2023, sparking controversy and a DA petition calling for its rejection.
Eskom's application, totaling R537 billion for 2027, aims to recover allowable revenue and reflect improved operational performance, despite the significant increase in internal costs and executive remuneration.
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