Eskom’s 36% tariff increase: Parliament to debate necessity of massive hike

Parliament is set to debate the substantial electricity hike proposed by Eskom.

The figures submitted to the National Energy Regulatory of South Africa (Nersa) by the state-owned entity suggests they will seek a 2025/26 financial year increase in the region of 40%.

The Democratic Alliance has succeeded in having the Speaker of the House Thoko Didiza agree to a parliamentary debate on the issue.

Only a draft application, says Nersa

Nersa stated on 16 August that the revenue application received was simply a draft.

“It is important to clarify that Nersa has not yet received Eskom’s final application for consideration,” read a statement issued by Nersa spokesperson Charles Hlebela.

“Once the final application has been submitted, Nersa will consider the application, and diligently adhere to Nersa’s regulatory processes,” it continued.

ALSO READ: City Power granted leave to appeal Eskom ruling on billing dispute

DA spokesperson on Electricity and Energy Kevin Mileham explained the draft figures stipulated a 36.15% tariff increase, as well as an additional 4% levy for Eskom’s claw-back account.

Mileham told The Citizen that no date had yet been set for the debate and that the programming committee will make that decision this week.

Petition to limit rates hike

The DA launched a petition last week which as of 1pm on 19 August has gathered 12 544 signatures.

ALSO READ: No load shedding, but City Power warns load reduction could hit these areas to ‘protect from total collapse’

Additionally, DA mayors across the country wrote letters to Nersa stressing how such a tariff increase would cripple residents and municipalities alike.

“Many families will find themselves in a dire position, forced to make impossible choices between essential needs, thereby driving more people into poverty,” wrote Umngeni mayor Christopher Pappas.

“It is imperative that Eskom finds alternative solutions to improve efficiency and reduce costs without imposing further financial strain on our citizens,” wrote Mossel Bay mayor Dirk Kotze.

As per the DA’s figures, Eskom’s electricity tariff has already increased 450% since 2007.

NOW READ: High Court orders Joburg and City Power to pay R1.073 billion debt to Eskom