Brace yourself for a massive electricity tariff hike on 1 April

Despite the excessive load shedding, South Africans will have to dig a lot deeper in their pockets from 1 April when Eskom hits the country with another double digit electricity tariff hike.

The hike stems from 2023 when the National Energy Regulator of South Africa (Nersa) approved a massive tariff increase split over two years.

Increase

Eskom had applied for a 32% tariff increase for the 2023/2024 financial year and an additional 22.52% in 2024/2025.

The ailing power utility was looking to recover R351 billion through the tariff hike in 2023/2024 and had planned to recover R381 billion the following financial year.

With 2023 taking the brunt of the hike absorbing an 18.65% increase, residential homeowner rates will be going up by 12.74% in April this year.

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Court battle

In December 2023, the High Court of South Africa rejected the requests for a judicial review on the revenue decision and tariff approval made by Nersa regarding Eskom’s multi-year price determination.  

The judgment followed applications by the Democratic Alliance (DA) and the South African Local Government Association (Salga) to review the Nersa decision on Eskom’s revenue application.

The High Court found that “when all is considered and the detailed and extensive reasons furnished by Nersa is compared with the attacks on its decisions, none of the review grounds pass muster,” according to BusinessTech.

“All relevant factors have properly and in detail been considered, the conclusions reached were neither arbitrary nor irrational, and the issue of cross-subsidisation was considered at the appropriate stage,” the court said.

Therefore, the High Court found that both the DA and Salga review applications must fail.

Hurting South Africans

Meanwhile, the Economic Freedom Fighters (EFF) has rejected the upcoming electricity price hike saying it is a “callous disregard for the harsh realities faced by millions of South Africans”.

“This hike will unjustly hit the poor and working class the hardest. Many families already struggle to keep the lights on and put food on the table, and this increase will force them to make impossible choices, jeopardising their basic needs,” the EFF said.

The African Transformation Movement (ATM) has called on Eskom to reconsider its decision and explore alternative solutions that prioritise affordability and social responsibility.

“We urge Eskom to engage in meaningful dialogue with stakeholders, including consumer advocacy groups and civil society organizations, to find a more equitable and sustainable way forward.”

The ATM has also called on the relevant authorities, including Nersa and the Department of Mineral Resources and Energy, to intervene and ensure that any adjustments to electricity tariffs are fair, transparent, and in the best interests of all South Africans.

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