Community groups oppose Eskom's proposed 8.83% electricity tariff hike
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Community groups oppose Eskom's proposed 8.83% electricity tariff hike

Civil and community groups have protested the proposed 8.83% increase in electricity costs by Eskom, urging the National Energy Regulator of South Africa (NERSA) to reject the proposal. Participants warn that the tariff rise will intensify financial pressure on households already struggling with rising prices for food, transport, and other essential goods.

The Shallcross Chatsworth Queensburgh Residents Association (SCQRA) has officially lodged an objection with NERSA against the proposed 8.83% tariff increase. NERSA has given the public until October 2nd to submit comments before the regulator makes a final decision in November.

If approved, the increase will take effect on April 1, 2027, for customers receiving electricity directly from Eskom. Meanwhile, municipal customers will face an 8.84% increase starting July 1st. The deadline for written submissions is 2:00 PM on October 2nd, and public hearings are scheduled for October 8th. NERSA is expected to make its final decision on November 26th.

The average price per unit of electricity will rise from 240.28 cents to 261.50 cents, representing an increase of 21.22 cents. Nazira Khan, chairperson of SCQRA, stated that Eskom's institutional recovery cannot be financed by depleted citizens who are already battling a severe cost-of-living crisis.

According to her, the exponential rise in utility bills deprives families of basic dignity, forcing them to make impossible choices between paying for electricity, food, healthcare, and education. Khan emphasized that access to reliable and affordable energy is closely linked to a safe environment and sustainable socio-economic well-being, and punitive pricing undermines community stability and survival.

She also noted that the regulator's decisions must be rational, reasonable, and procedurally fair, and any approval of this hike by NERSA amid data on hunger and unresolved municipal structural crises renders the administrative decision irrational, procedurally flawed, and legally vulnerable to judicial review.

Khan cited examples based on research and field monitoring conducted by organizations such as the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD). This data shows that low-income households are forced to prioritize fixed expenses like transport and electricity before purchasing food.

She quoted data indicating that after covering transport and basic electricity consumption (totaling R3,183.35), a minimum wage earner is left with only R1,653.35 for food. This amount covers only 30.2% of the PMBEJD basic food basket, leading to a catastrophic food deficit of 69.8%. Consequently, families are forced to forgo proper nutrition just to keep the lights on and be able to get to work.

The SCQRA representative added that households dependent on social grants, such as a mother with two children receiving child support, will face 'catastrophic deficits.' The association called on NERSA to reject and dismiss Eskom's application for an 8.83% price adjustment and associated fixed fee increases.

She strongly recommended an immediate moratorium on all electricity price increases until a comprehensive structural support system is established. Furthermore, she demanded that NERSA compel Eskom to cover operational deficits through internal cost control, aggressive supply chain reform, and reduction of technical losses, rather than balancing its books on poor citizens.

Kavir Budu, chairman of the Clare Estate Civic Association, also expressed the view that the tariff increase will place an even greater burden on residents. He noted that working families, pensioners, and small businesses are already facing a rising cost of living. Budu stated that communities cannot remain silent while electricity costs continue to climb, and they must demand greater accountability, transparency in decision-making, and reliable service delivery.

Roki Naidu, chairman of the Havenside Civic Association, also stated that the proposed increases are unacceptable. He stressed that electricity costs have always increased in double-digit percentages, and the average worker, as well as the general public, cannot afford such hikes. The civic association strongly objects to these proposals.

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Public expresses disagreement with proposed Eskom electricity tariff increase due to affordability concerns
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Public expresses disagreement with proposed Eskom electricity tariff increase due to affordability concerns

Civil society and public organizations are opposing the proposed 8.83% increase in electricity tariffs by Eskom. They warn that further increases in energy costs could intensify financial pressure on households and small businesses, which are already struggling with the rising cost of living.

The public has until October 2nd to submit comments regarding Eskom's proposed tariff structure while the National Energy Regulator of South Africa (NERSA) reviews the submission. If approved, the 8.83% increase for direct Eskom customers will take effect in April 2027, and municipal wholesale purchases will increase by 8.84% starting in July 2027.

The 'Better Governance Initiative' (BGI), which launched the petition against the hike, noted that electricity is taking up an increasing share of household and business budgets. BGI founder and director, Sabelo Chalufu, stated: 'Residents simply cannot afford any further increase in electricity prices.' He added that the main concern is the cost of living and doing business, primarily for residents, and secondarily for small businesses, as energy consumes a larger portion of budgets, hitting the needy the hardest.

BGI calls on NERSA to reject the increase, arguing that Eskom has demonstrated the ability to operate sustainably based on previously approved tariff hikes. AfriForum will also submit official objections to this increase. Morne Mostert, local government affairs manager, questions the decision amid declining electricity sales and billions in Eskom profits. He noted: 'Electricity sales have dropped by 6.2%, yet revenue has grown thanks to implausibly high tariffs. Now Eskom wants to raise tariffs again above inflation levels.'

Mostert warned that higher tariffs could push more households and businesses towards using solar panels and other forms of self-sufficiency, thereby reducing dependence on Eskom. He emphasized: 'Consumers are buying less electricity but paying more for it.' The company ActionSA Gauteng has also joined the consultation process, focusing on how Eskom plans to recover revenue, rather than just the overall increase.

ActionSA Gauteng provincial chairperson, Funzi Ngobeni, stated that the proposed structure could lead to low-consumption households facing a greater effective increase than more active users. Ngobeni clarified: 'The average increase does not tell the whole story. What matters is how much people are actually paying.'

ActionSA also questioned the R8.569 billion gap between Eskom's proposed and approved revenue figures. Energy analyst from Jaltech and member of the South African Independent Power Producers Association (SAIPPA) board, Matthew Cruz, believes that when assessing affordability, Eskom's financial obligations, including debt and infrastructure investment, must be taken into account. Cruz stated that NERSA should carefully examine not only whether Eskom requires additional revenue but also whether the costs passed on to consumers are efficient, reasonable, and fairly distributed among different customer groups. He also warned that tariff increases could accelerate the shift to alternative energy sources, as clients who can afford it increasingly invest in energy efficiency, solar panels, and batteries.

NERSA requested written comments by 4:00 PM on October 2, 2026, and a virtual public hearing is scheduled for October 8th from 9:30 AM to 1:00 PM. Interested parties wishing to attend or present must apply by 4:30 PM on October 2nd.

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