The Green Connection has called for a Just Energy Transition in the country. Picture: iStock
As the National Energy Regulator of South Africa (Nersa) resumes its public hearings into Eskom’s proposed Retail Tariff Plan (RTP) the Green Connection has called for a Just Energy Transition in the country.
Nersa’s RTP resumes after being postponed from the initial December 18 date set, after the national hearings on Eskom’s sixth multiyear price determination (MYPD6) ran longer than anticipated.
The postponement came amid concerns that the December deadline for written comments and hearings coincided with the festive season and that stakeholder input could be muted.
Last year, Eskom asked Nersa for a 36% increase in tariffs from April 2025 and 11% and 9% increases in 2026 and 2027.
The utility’s proposed tariff hike follows an almost 13% hike in April 2023. The hefty increase has already sparked controversy, with the DA launching a petition calling for the application to be rejected.
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The Green Connection’s Strategic Lead, Liz McDaid, said affordable, reliable and accessible electricity is fundamental to ensuring citizens’ human rights.”
“It should meet societal needs and serve as a catalyst for economic growth while respecting ecological limits. The proposed tariff plan exposes South Africa’s outdated and inequitable electricity system and pricing mechanisms. It clearly shows that we are out of sync with the urgent need to shift to a decentralised and sustainable energy system.”
The Green Connection joined the Southern African Faith Communities Environment Institute (SAFCEI) and groundWork in strongly critiquing Eskom’s latest proposal.
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According to McDaid, a comprehensive stakeholder process in which the entire country can engage on electricity and energy issues is needed.
“This should cover pricing and policy and look at how to finance the entire generation and supply system to ensure that electricity is affordable for and accessible to ordinary people. We especially need to ensure that there are proper subsidies for marginalised and vulnerable people.”
McDaid highlights further issues with the proposed tariff restructuring, saying that it must reflect the true cost of supply.
“For instance, time-of-use (TOU) tariffs (which charge more for electricity used at peak times) might be useful for balancing demand but do not account for socio-economic disparities.”
She pointed out that lower-income households often cannot shift their electricity usage to off-peak times to take advantage of lower tariffs.
McDaid said South Africa’s energy future must “prioritise people and planet over profit.”
“This is why we advocate for a just energy transition, driven by good governance and environmental sustainability, and which promotes a decentralised energy system.”
Last year, President Cyril Ramaphosa spoke about making South Africa greener during his opening of Parliament address.
“As we undertake a just transition towards renewable energy, South Africa must create a green manufacturing sector centred on the export of green hydrogen and associated products, electric vehicles and renewable energy components.
“Work is underway to set up a Special Economic Zone in Boegoebaai to drive investment in green hydrogen energy projects,” Ramaphosa said.
Ramaphosa also discussed harnessing the sun’s power, which would significantly ease the energy crisis.
“South Africa has some of the best solar and wind resources in the world…Just this week, we saw the largest-ever private energy project connect to the grid near Lichtenburg in the North West, with over 390,000 solar panels that will add 256 MW to the grid.”
The sixth multiyear price determination (MYPD6) confirmed that Eskom is applying a total allowable revenue of R446 billion for 2026, R495 billion for 2027, and R537 billion for 2026.
Municipalities across the country are bracing for the possibility of a massive hike in electricity prices. Many are already in arrears with Eskom, and the South African Local Government Association (Salga) fears the 36% increase will see them fall deeper into debt.
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