Pushback grows against Eskom’s proposed tariff increase, raising affordability concerns

Concerns are mounting over Eskom's proposed 8.83% electricity tariff hike, as civil society groups argue it could put additional strain on households and small businesses already grappling with rising living expenses. The public has until October 2 to submit comments on the proposed tariff structure, which, if approved, will take effect in April 2027 for direct customers and July 2027 for municipal bulk purchases.

The Better Governance Initiative (BGI) has launched a petition opposing the increase, citing electricity as an ever-growing expense in household and business budgets. BGI Founder and Director Sabelo Chalufu emphasizes that residents simply cannot afford further hikes in electricity prices, as it disproportionately affects the most vulnerable. AfriForum, another organization, will also submit formal comments, questioning Eskom's record revenue despite a 6.2% fall in electricity sales.

ActionSA Gauteng has joined the consultation, focusing on how Eskom plans to recover revenue instead of just the tariff increase. They note that lower-consumption households could face a higher effective increase compared to heavier users. A Homepower 4 household using 350kWh could see an 11.02% increase, while one using 1 500kWh would face a 7.32% hike.

Energy analyst Matthew Cruise from Jaltech and SAIPPA cautions that rising tariffs should be assessed alongside Eskom's financial obligations, such as debt and infrastructure investment. He warns that higher electricity prices may lead more consumers to invest in efficiency, solar, batteries, and other forms of self-generation. NERSA has requested written comments by 4pm on October 2, with a virtual public hearing scheduled for October 8 from 9.30am to 1pm.