Government Mulls Interference In Eskom's Proposed Tariff Hike

The government is all set to intervene in Eskom's proposed electricity tariff increase, Minister of Electricity and Energy Kgosientsho Ramokgopa's said in a media briefing on Wednesday.

Eskom has requested approval from the National Energy Regulator of South Africa (Nersa) for a multi-year price plan. If approved, Eskom customers could face a 36.15% tariff hike for 2025/26, an 11.81% increase for 2026/27, and a 9.10% rise in 2027/28.

This proposal raises concerns about the affordability of electricity and the impact on the cost of living. Nersa is currently conducting public hearings on Eskom's request.

"As a government, we will be fashioning interventions to ensure that we provide relief. It's still a process that is underway inside government. Before Nersa makes that determination, we'd have made our submissions," Ramokgopa said, SA News reported.

He added, "I want to say – with a degree of confidence – that we will get to a situation where we don't realize a 36, 40% tariff increase. It should be something significantly lower than that. [This will be] taking into account the need for the industry to be competitive; the pressures that the households are experiencing."

The minister acknowledged that the cost of utilities like electricity and water is a significant burden on households, especially low-income families. He assured the public that the government would intervene to provide substantial relief but the exact tariff increase will be determined by Nersa.

While the government will step in, it will not interfere with Eskom's ability to operate.

Ramokgopa said that some of Eskom's tariff application is justified but believes it's possible to balance both Eskom's needs and the need to relieve pressure on households and businesses. He expressed confidence that a solution can be found.

The minister urged South Africans to keep participating in Nersa's public hearings regarding Eskom's proposed tariff hikes. The hearings will take place on the following dates and locations:

• Nov. 20: ETC Conference Centre, Spondo Street, Gqeberha, Eastern Cape
• Nov. 21-22: Transnet National Ports Authority, N-Shed Passengers Terminal, Durban, KwaZulu-Natal
• Nov. 25: Bon Hotel Bloem Plaza, East Burger Street, Bloemfontein, Free State
• Nov. 27: Mbombela Civic Centre, 1 Nel Street, Mbombela, Mpumalanga
• Nov. 29: Jack Botes Hall, 14 Bodenstein Street, Polokwane, Limpopo
• Dec. 2: Protea Hotel, Barend and Margaretha Prinsloo Streets, Klerksdorp, North West
• Dec. 3-4: Eskom Academy of Learning, Dale Road, Midrand, Gauteng

Ramokgopa stressed the importance of everyone participating in the hearings to ensure Nersa receives a wide range of opinions. Nersa's decision on Eskom's application is expected on Dec. 20.