Rising electricity costs are crippling households and forcing them to choose between electricity and other essential expenses, Parliament’s Standing Committee on Appropriations has said, reports the Witness.

The committee was reacting to Eskom’s presentation on its proposed tariff increases, which would take effect from April 1 next year. The utility has proposed an average increase of 8,83% for customers it supplies directly and 8,84% for municipalities in the 2027/28 financial year.

The increases remain subject to approval by the National Energy Regulator of South Africa (Nersa). If approved, the increase for Eskom’s non-municipal customers would take effect on April 1, 2027, and the municipal adjustment on July 1, 2027, in line with the different financial-year timing for municipal tariffs.

Eskom also briefed the committee on reforms aimed at supporting indigent households and tackling municipal debt owed to it, which stood at R122,5 billion in August 2026. Defaulting metros have entered into payment arrangements that will take several years to implement, and their success depends on continued payments and compliance, Eskom said.

According to the presentation, the overall average increase is calculated by comparing allowed revenue with forecast electricity sales. The municipal figure is calculated separately.

Eskom’s application estimates an average municipal price of 247,42 cents per kilowatt-hour for July 2027 to March 2028, compared with 227,32 cents for the same period in the previous year.

“The figures are average adjustments, not a guarantee that every customer’s bill will rise by the same percentage. Individual impacts depend on the customer’s tariff and electricity use, as well as changes to the structure of some tariffs,” Eskom said in the presentation.

It warned that unclear or overlapping rules could create disputes, delay implementation and leave some customers carrying costs avoided by others.

The increases form part of Eskom’s 2027/28 tariff application to Nersa. Municipal tariff changes must also follow the process required by the Municipal Finance Management Act, including tabling in Parliament by March 13, 2027.

Committee members questioned the proposed tariffs, arguing they were inconsistent with the government’s commitment to fighting poverty and unemployment. They also raised concerns that higher interest rates and rising prices were worsening the affordability crisis for households and communities.

Committee chairperson Mmusi Maimane called for a closer examination of Nersa’s role in determining tariffs and of Eskom’s submissions requesting increases.

He said that while the relevant committee could address operational matters, the Standing Committee on Appropriations had a responsibility to scrutinise appropriated funds and ensure they were used effectively and accountably.

“Rising electricity costs force households to choose between essential expenses such as school fees, food and electricity. We therefore need decisions that balance financial sustainability with households’ ability to pay,” Maimane said.

The Msunduzi Association of Ratepayers, Residents and Civics (Marrc) said it had submitted an objection to Eskom’s proposed electricity price increase. Marrc chairperson Anthony Waldhausen said their objection was based on affordability, constitutional sustainability, transparency and public-interest considerations.

“While an above-inflation electricity increase is not automatically unlawful, it must be rational, reasonable, procedurally fair, transparently calculated, and capable of constitutional justification, particularly where electricity is an essential service.

Consumers are already exposed to escalating electricity tariffs, municipal surcharges, and Value-Added Tax (VAT),” he said.

Msunduzi spokesperson Ntobeko Mkhize said that, in line with the Electricity Pricing Policy, the municipality was still conducting its Cost of Supply Study.

She said the tariff increase would be determined by the outcome of the study. “The municipality will hold consultation meetings as part of the IDP review and tariff review processes early in 2027, as is normally done annually. Consultation meetings will be announced on various platforms, including print media, inviting communities to participate,” said Mkhize.

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