Eskom’s Unjust 12.74% Tariff Hike

Dear Editor

The Democratic Alliance unequivocally condemns Eskom’s unconscionable 12.74% tariff increase for direct customers, effective on the 1st of April. It is a brutal economic assault on ordinary South Africans already pushed to the brink of financial collapse.

We demand a comprehensive and transparent review of Eskom’s pricing model. The Electricity Pricing Policy needs to review how Eskom Bulk Tariffs are determined, how municipal tariffs are set, incentivise own generation, and provide a safety net for indigent consumers that minimises the role of municipalities.

A recent presentation by Eskom to Parliament’s Portfolio Committee on Electricity and Energy revealed that 17.27% of Eskom’s electricity consumed is billed either through negotiated pricing agreements or international sales. What is shocking is that this 17.27% only generates 8.5% of Eskom’s revenue from the sale of electricity.

It is ludicrous that consumers of bulk electricity and neighbouring countries are getting Eskom power cheaper than homes and businesses across SA.

The 12.74% tariff increase represents more than a mere price adjustment; it is a systemic attack on the economic sustainability of millions of households and businesses.

At a time of unprecedented financial strain characterised by relentless cost of living pressures, persistent and rising unemployment, and continuous economic uncertainty, Eskom’s decision will push countless families and businesses deeper into economic despair.

This tariff increase will critically undermine South Africa’s economic competitiveness by making local products significantly more expensive in global markets. It will strangle small and medium enterprises, devastate manufacturing and export sectors, and accelerate job losses as businesses buckle under unsustainable electricity costs.

Eskom is charging more while delivering less.

South Africans are being forced to pay premium rates for an increasingly unreliable power supply. There is a direct and alarming correlation between Eskom’s tariff increases, deteriorating electricity infrastructure, and the progressive reduction of business operational capacity.

The utility continues to burden consumers to fund its financial mismanagement, seek repeated bailouts instead of improving operational efficiency, resist critical structural reforms, and fail to account for systematic operational failures.

The Minister of Electricity and Energy has demonstrated complete inaction on the Electricity Pricing Policy review, epitomising a government content with rhetoric and devoid of meaningful intervention.

South Africans deserve a functional, efficient, and affordable electricity system. The Democratic Alliance remains steadfast in our fight against this economic oppression.

Regards

Kevin Mileham MP
DA Spokesperson on Electricity & Energy