๐ง๐ต๐ฒ ๐ฆ๐ผ๐๐๐ต ๐๐ณ๐ฟ๐ถ๐ฐ๐ฎ๐ป ๐๐ฒ๐ฑ๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป ๐ผ๐ณ ๐ง๐ฟ๐ฎ๐ฑ๐ฒ ๐จ๐ป๐ถ๐ผ๐ป๐ (๐ฆ๐๐๐ง๐จ) ๐ผ๐ฝ๐ฝ๐ผ๐๐ฒ๐ ๐๐ต๐ฒ ๐ฝ๐ฟ๐ผ๐ฝ๐ผ๐๐ฒ๐ฑ ๐๐ฎ๐ฟ๐ถ๐ณ๐ณ ๐ถ๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ฒ ๐ผ๐ณ ๐ฏ๐ฒ,๐ญ๐ฑ% ๐ฏ๐ ๐๐๐ธ๐ผ๐บ ๐ณ๐ผ๐ฟ ๐ฎ๐ฌ๐ฎ๐ฑ. ๐ง๐ต๐ผ๐๐ฒ ๐ต๐ผ๐๐๐ฒ๐ต๐ผ๐น๐ฑ๐ ๐ฎ๐ป๐ฑ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐๐ฒ๐ ๐๐ต๐ฎ๐ ๐ฟ๐ฒ๐น๐ ๐ผ๐ป ๐บ๐๐ป๐ถ๐ฐ๐ถ๐ฝ๐ฎ๐น ๐๐๐ฝ๐ฝ๐น๐ ๐ผ๐ณ ๐ฒ๐น๐ฒ๐ฐ๐๐ฟ๐ถ๐ฐ๐ถ๐๐ ๐๐ถ๐น๐น ๐๐ฒ๐ฒ ๐ฎ ๐๐ฎ๐ฟ๐ถ๐ณ๐ณ ๐ถ๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ฒ ๐ผ๐ณ ๐ฐ๐ฐ%. The Daily Maverick has reported that it saw a confidential draft document to be submitted to the National Energy Regulator of South Africa (NERSA) that contains this outrageous application.
The first increase would take effect on the 1st of April 2025 if NERSA approves. Moreover, Eskom plans to have an additional increase of 43.55% in 2026, 3.36% in 2027, and 11.07% in 2028, with the first increase for these subsequent years set for the 1st of July 2025. A household with an average consumption of 900kWh could see themselves paying an addition of R1,600 per month.
Eskom’s proposal comes on the heels of a 12.74% increase in electricity tariffs which came into effect in April 2024, an 18.65% increase in April 2023, 9,61% in 2022 and 15% in April 2021. This series of increases has placed a significant financial burden on South African consumers particularly working-class households who are already struggling with the economic burdens of unemployment and the rising cost of consumer goods.
The proposed tariff increases by Eskom must be viewed in the context of long-term trends in electricity prices. Between 2007 and 2024, electricity prices in South Africa increased by more than 539% nominally. The current proposal, if implemented, will only continue this trend. Higher electricity costs will only make it harder for people to afford a living especially because it is a basic good required to heat homes, for cooking and heating water.
The history of mismanagement, corruption and looting has sabotaged Eskomโs financial health, putting it in a condition where it perpetually seeks investments to stay afloat.
Fiscal austerity has however disadvantaged Eskom with the government refusing to invest heavily in Eskom. It has agreed to a debt relief premised on Eskom being prohibited from investing in the new generation. The defunding of Eskom corresponds with the corporatisation model which has made Eskom rely on its balance sheet to survive. This has effectively pushed it into a situation where it has to raise money through sales and profits.
However, additional factors include the Independent Power Producers (IPPs) introduced as part of the structural reforms to liberalise the energy markets. In previous tariff hikes, the IPPs submitted requests for hikes of not less than the inflation rate. These requests were factored into applications for tariffs by Eskom that were subsequently approved by NERSA. In April 2023, the IPPsโ tariff request contributed one-third to the total tariff.
Corporatisation, IPPs profit margins and corruption have combined to compel Eskom to raise tariffs to cover costs of operation. This suggests that Eskom shifts its financial burdens onto consumers, particularly households and small businesses. Municipalities rub pepper on the wound when they add surcharges to the electricity they supply to residents.
By prohibiting Eskom from building new generation capacity with the debt-relief, government is aimed at privatising the power generation without genuine decarbonisation plan driven by the public. This approach does not address the underlying issues within the energy sector which are centred around the energy transition and building of renewable capacity. By giving the transition to the private sector, government will subject us to corporate and profit motives which would either exacerbate or retain the energy poverty we have today.
SAFTU wants Free Basic Electricity (FBE) for the working class people. FBE will not be achieved under market competition. This means even the dummy FBE that they claim to be giving to millions of households will be eradicated to make way for market-regulated provision of electricity.
