Tariff hikes: Does Eskom ever read the room?

We wonder if Eskom ever reads the room. And, if it does, does it really care?

The power utility this week motivated why it was demanding an 8.83% from non-municipal customers and 8.84% from municipalities tariff increase from 1 April next year, subject to National Energy Regulator of South Africa (Nersa) approval.

This is on the back of already increased tariffs this year by 8.76% and 9.01% for direct and municipal bulk purchases, respectively.

These increases are well above inflation figures.

Eskom told parliament’s standing committee on appropriations: “Our reforms should have safeguards so that our market does not fail. We believe those safeguards should be based on cost reflectivity, the structure of the tariff must be transparent and costs must not be bypassable.”

We understand Eskom needs to find money now that municipal electricity debt has reached R122 billion – double 2023’s level of R59 billion.

Municipalities may have slightly increased their overall payment rate, but a massive R22 billion of the outstanding amount was interest on the principal debt.

But where are consumers going to find the money for this increase?

With constant fuel hikes, rates climbing and the cost of living crippling most households, the taxpayer is barely cutting it.

Now, you’ll have to add more to all the other increases you are facing.

MP Wesley Douglas said: “The tariff policy determines whether a child can study, whether a pensioner can cook, whether a township business survives, and whether a factory can employ more workers. It is impacting our cost of living and it means it is going to be harder on our people to scrape by.”

Eskom may say it is working to avoid double-digit increases as it reduces costs by 2030.

In the meantime, you’ll probably just have to fork out more.