Cost-of-living crisis: We cannot keep the lights on anymore

The cost-of-living crisis is getting worse for South African consumers who said in a recent survey that they no longer believe that they can afford to keep the lights on in the same month that the massive 18.65% increase in electricity tariffs recommended by the National Energy Regulator of South Africa is implemented.

Last week, South Africans faced their worst nightmare since the start of load shedding in 2007, when the country was thrust into all-day stage 6 rolling blackouts with the inevitability of moving to stage 8 hanging like a sword over their heads.

The results of a recent Debt Rescue survey show that the vast majority of South Africans no longer believe they can afford to keep the lights on.

Over 1 000 people participated in the survey which reflected the desperation of people across the country.

An overwhelming 77% of participants said they believe the cost of electricity has become unaffordable, while a staggering 89% said that it will significantly affect their budgets. What is even worse is that all but a fortunate few can live without the power that Eskom provides.

Winter is coming closer and consumers need the national electricity producer to power up effectively to keep households warm, heat up food, light up homes, illuminate shopping malls and keep the street lights burning.

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Consumers cannot keep the lights on

“South Africans must pay for corruption and mismanagement at Eskom in the most unfair and unaffordable way. 40% of participants said they already spend between R500 and R1 500 per month to buy electricity and that they were simply not able to absorb another increase.

“Taking into account that families who earn the least spend a disproportionate amount of their income on necessities such as transport, electricity and food, now also have to live with rolling blackouts, [that] is the real national state of disaster,” he says.

While authorities advise citizens to use electricity sparingly, with continual public service broadcast announcements reminding them that the grid is under pressure while offering advice that is tantamount to ‘just keep dancing in the dark’, most people took measures to reduce their electricity consumption.

Roets reports that 61% of participants polled confirmed that that they invested in energy efficient appliances, while 29% switched to pre-paid electricity in their bid to reduce their monthly consumption and 16% implemented solar conversions.

“Load shedding has a harrowing impact on the way of life of every South African. This was unequivocally affirmed by 65% of those polled, who said that load shedding has severely affected every aspect of their lives. It is hard to believe that the authorities are unaware of the dire straits that most of the population currently find themselves in,” Roets says.

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Rolling blackouts are killing economy

Although consumer price pressures have been gradually easing since the second half of 2022, raising hopes that the central bank could soon end its hiking cycle, the subsequent intensity of rolling blackouts and its effect on businesses especially has thrown a spanner in the works.

This is substantiated by energy expert Lungile Mashele, who says that that the coming winter months are likely to be even worse.

The latest Consumer Price Index shocked everyone last week with news that South Africa’s inflation rate increased to 7.1% in March, on the back of steep food prices. Most distressing is that food inflation increased by 14% in last the 12 months, taking the annual food inflation rate to a 14-year high, the largest annual increase since March 2009.

Roets says roughly translated, this means that families across the country can expect no relief in the cost of their monthly food baskets in the near future and as always it is the most vulnerable households who suffer most. “Why are we not seeing more decisive action?”