Grim Christmas looms for South Africans if Eskom granted massive electricity tariff hikes [VIDEO]

South Africans will learn before Christmas whether they face a grim new year with significantly higher electricity costs.

This follows the National Energy Regulator of South Africa’s (Nersa) public hearings into Eskom’s annual application for another electricity tariff hike, which kicked off in Cape Town on Monday. The hearings will take place across all nine provinces over the next two weeks.

The final decision expected on 20 December.

Watch the DA protest over Eskom’s proposed electricity tariff hike

📣 NERSA must not let Eskom bleed citizens dry! The DA is taking a stand against the 40% electricity price hike.

The DA's Federal Chairperson, Dr Ivan Meyer, led a DA delegation to the first public hearings in the Western Cape.

Watch the full broadcast: https://t.co/zce3VqGkq7 pic.twitter.com/sGwI4D7Ez8

— Democratic Alliance (@Our_DA) November 18, 2024

Grim Christmas

Eskom has proposed a 36.15% increase for its 2026 financial year, followed by an 11.81% hike in 2027 and 9.10% in 2028.

This is in addition to a 4% increase already approved by Nersa to recover losses of R8 billion from the 2021/2022 financial year. Earlier this year, a 13% tariff increase in April sparked public outrage.

ALSO READ: Nersa publishes Eskom’s request for hefty 36% electricity tariff hike

Eskom’s proposed tariff hike follows a 13% hike in April, with the hefty increase already sparking controversy, with the Democratic Alliance (DA) launching a petition calling for the application to be rejected.

Rejection

The parastatal’s application has also been rejected by Eskom’s customers and environmental groups.

The DA’s Federal Chairperson, Dr Ivan Meyer, led a delegation to the first public hearings in the Western Cape.

“This is not a private hearing, it’s a public hearing… Nersa must hear what the public is saying. They are saying ‘stop the 40% hike, Eskom is taking food off our tables, Nersa don’t let Eskom bleed us dry.’

“So, we are asking and Eskom and Nersa, listen at this public hearing, people are suffering,” Meyer said.

During the hearings, the Green Connection – an eco-justice organisation advocating for sustainable and equitable energy solutions – raised critical questions about the sustainability of Eskom’s revenue proposals and highlighted the urgent need for greater investment in renewable energy, to promote more equitable access to electricity from more sustainable sources.

Green Connection’s Liziwe McDaid said Eskom had consistently, over the past decade, asked Nersa for more money — but without providing more electricity.

“Eskom is in a death spiral, it actually doesn’t seem to be able to get out of where it is at the moment. And in the meantime, the real people who count aren’t able to afford electricity.”

Allowable revenue

It its application to Nersa, Eskom said the average price of electricity still does not cover the full efficient cost or the cost of capital.

The sixth multiyear price determination (MYPD6) confirms Eskom is making a total allowable revenue application of R446 billion for 2026, R495 billion for 2027 and R537 billion for 2026 which it applied for will be aimed at recovering what would have been determined as the allowable revenue.

G20

On Sunday, ahead of the G20 Summit in Rio de Janeiro, Brazil, President Cyril Ramaphosa appealed for assistance from developed countries to help African nations meet their environmental pledge of expanding renewable energy.

Ramaphosa said Africa needs really good partnerships with developed economies to follow through on commitments made at COP28 to triple renewable energy output by 2030.

The president emphasised that South Africa faced “enormous” energy challenges in the past three years.

ALSO READ: Midvaal to replace Eskom electricity supply with private company