The South African Federation of Trade Unions (SAFTU) strongly rejects NERSA’s decision to grant Eskom a 12.7% electricity tariff increase, a move that will further deepen the cost-of-living crisis and entrench energy poverty for millions of South Africans. This hike is an insult to workers and the poor, especially when inflation is at just 3%, unemployment is soaring, and wages remain stagnant.
Even more outrageous is that as soon as NERSA approved these excessive tariffs, Eskom issued an advisory warning the country of a return to intensified load shedding! This proves that higher tariffs are not improving electricity supply but merely bailing out Eskom’s inefficiencies at the expense of consumers. South Africans are being forced to pay more for a service that remains unreliable.
A LONG HISTORY OF ELECTRICITY PRICE EXPLOITATION
SAFTU has consistently warned that Eskom’s unsustainable tariff hikes over the past 15 years have pushed electricity out of reach for the poor and working class.
• In 2007, the average electricity tariff was around 19 cents per kilowatt-hour (kWh). Since then, Eskom’s prices have skyrocketed by over 700%, outpacing both inflation and wage growth.
• Between 2008 and 2012, South Africans endured annual increases of up to 25% per year under the guise of “cost recovery” and “capacity expansion.”
• In 2019 alone, NERSA approved a 13.8% increase, followed by 15.06% in 2021, and 18.65% in 2023—all while Eskom failed to stabilize generation or reduce load shedding.
• Despite this, Eskom remains in financial ruin, with debt bailouts of over R254 billion from the state while consumers are still expected to foot the bill.
The result? Millions of working-class families can no longer afford electricity, and many have been cut off entirely. This has led to:
• An increase in illegal connections and electricity theft, as people seek alternatives to survive.
• Businesses and industries shutting down or passing costs to consumers, worsening job losses and inflation.
• A rise in energy poverty, with many households reverting to unsafe energy sources like paraffin and candles, increasing fire hazards.
NERSA IS FAILING IN ITS DUTY TO PROTECT CONSUMERS
NERSA’s mandate is to ensure fair pricing, yet it has rubber-stamped Eskom’s demands year after year, ignoring submissions from SAFTU and other progressive voices that have called for:
1. A complete halt to tariff increases until Eskom fixes inefficiencies, corruption, and debt mismanagement.
2. A shift away from a cost-recovery model that punishes consumers, towards a socially progressive pricing system that prioritizes affordability for poor households.
3. An investigation into Eskom’s financial mismanagement, instead of making South Africans pay for its failures.
4. State investment in a publicly owned, reliable, and sustainable energy system, instead of handing electricity generation to private profiteers through Independent Power Producers (IPPs).
SAFTU DEMANDS:
1. Immediate reversal of the 12.7% increase—NERSA must rescind this unjustified decision.
2. An end to the tariff hike cycle—No new increases until Eskom improves efficiency and affordability.
3. A national audit of Eskom’s finances—Expose and eliminate corruption, overpricing, and mismanagement.
4. Protection of low-income households—Expand free basic electricity and introduce progressive tariff structures.
5. NERSA’s independence must be restored—It must regulate in the interest of the public, not corporate or state capture forces.
SAFTU will mobilize workers, communities, and progressive forces to fight this decision. We will not allow Eskom and NERSA to continue forcing the poor to subsidize their failures, while businesses and the elite benefit. We reject this daylight robbery—enough is enough!
A Statement was issued on behalf of SAFTU by General Secretary Zwelinzima Vavi.
