Eskom’s continued tariff hikes unsustainable – Expert
Energy Expert Chris Yelland says the National Energy Regulator is unlikely to grant Eskom the full 36% tariff increase it has applied for.
The proposed electricity tariff hike comes as South African consumers are grappling with high inflation rate and unemployment.
Eskom applied for an allowable revenue of R446 billion for the 2025/26 financial year.
If granted, this would translate to a tariff increase for direct Eskom customers of 36.15% on April 1st next year, and a 43.55% hike in municipal tariffs from 1 July.
The utility's multi-year request includes applications to hike up tariffs by almost 12% in 2027 and 9% in the 2028 financial year.
On Wednesday, NERSA published the power utility’s revenue application for public comment.
“In the past, NERSA has never given what Eskom asked for they always trimmed it down and I expect that the same will apply this year. A 36% price increase would be a huge shock” says Yelland.
“Putting up the prices to large amounts will have a significant impact in reducing demand for electricity as customers switch to alternatives and save as much electricity as possible and do everything possible to use less electricity”.
Nersa says public submissions on the proposed increases are open until 1 November.
Public hearings have then been scheduled to take place from 18 November until 4 December.
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