Electricity ‘quickly becoming a luxury’

Midvaal Local Municipality residents have aired their grievances about the high electricity increase that continues to negatively affect their lives. 

The municipality in the southern region of Gauteng governs at least 38,046 households.

Electricity tariffs’ increase impact

Executive Mayor Alderman Peter Teixeira says the municipality experienced a high number of complaints days after the increase in electricity tariffs was implemented.

The electricity was increased by 12.72%, as approved by the National Energy Regulator of South Africa (Nersa). The implementation came into effect on 1 July 2024, resulting in residents across the country complaining about the added high cost of living.

He says according to independent estimates, the tariff increase is six times higher than the inflation rate, as electricity prices have grown by more than 450% since 2008. In 2023, economists Zaakirah Ismail and Christopher Wood claimed the 450% spike in electricity in a bulletin published by the South African Reserve Bank (SARB), reported Business Tech at the time.

“These increases have had and continue to have a catastrophic impact on South Africans, especially low-income households who must choose between basic items such as groceries or electricity.”

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A luxury that many will not be able to afford

He says although the right to electricity is not mentioned in the Constitution, it is fundamental for maintaining basic living standards. “Section 10 of the South African Constitution protects the right to human dignity, and electricity enables individuals to access a basic standard of living, thereby contributing to the realisation of human dignity,” says Teixeira.

If people are unable to pay for electricity, they will be deprived of lighting, refrigeration of food items and the simple ability to take a warm bath, especially in this harsh winter season. Access to electricity is quickly becoming a luxury that many ordinary South Africans will not be able to afford.

“Should this trend continue, it will lead to energy deprivation, further pushing up the scales against the poor who are already struggling in this economy” adds Teixeira.

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Teixeira stresses that the unaffordability of electricity may lead people to take drastic measures including connecting to the grid illegally. He says connecting to the grid illegally will weaken municipalities’ revenue collection and their ability to provide services. Accessibility to electricity reduces reliance on harmful fuels like coal and wood, which have been proven to cause respiratory issues.

Rampant corruption and mismanagement

He notes how South Africans are already struggling with the high cost of living, and how the double-digit increase in electricity tariffs will further drive them into a life of poverty. “Ordinary South Africans cannot be expected to carry the burden of the rampant corruption and mismanagement that has been so prevalent at Eskom.”

Teixeira says if the government could address the challenges Eskom faces, the cost of electricity would be better.” However, instead of addressing the challenges, they seem determined to pass the cost on to South Africans through constant and endless billion-dollar bailouts and the Nersa-approved increases,” he says.