Imminent Tariff Increases Threaten to Plunge Millions Into Energy Poverty

Dear Editor

The Democratic Alliance is appalled by the National Energy Regulator of South Africa’s (NERSA) silence, while Eskom seeks to push many below the poverty line with exorbitant tariff increases.

Following a meeting of the NERSA Special Extended Electricity Sub-Committee on 21 January 2025, no announcement has been made, drawing a veil of secrecy over a decision that could cost South African taxpayers for years to come.

The proposed electricity price framework of R446 billion for 2025/26, R495 billion for 2026/27, and R537 billion for 2027/28 represents a critical threat to South African households and the broader economy.

These increases will:

• Deepen energy poverty for millions of vulnerable households.
• Force families to choose between electricity, food, and housing.
• Dramatically increase operational costs for businesses, especially small and medium enterprises.
• Potentially accelerate job losses in an economy already struggling with 32.9% unemployment.
• Push more South Africans into financial distress and economic marginalisation.

We call on NERSA to stop hiding what they have coming, and respect South Africans enough to be upfront.

NERSA cannot remain silent while millions of South Africans are effectively priced out of accessing essential electricity. The ripple effects of these proposed increases will devastate local economies, exacerbate poverty, and further strain the already fragile economic ecosystem.

We demand that NERSA:

• Immediately release the complete minutes and documentation from the 21 January 2024 special extended meeting.
• Provide a comprehensive breakdown of the decision-making process.
• Clarify the rationale behind their recent recommendations.
• Address the severe socio-economic implications of the proposed Multi-Year Price Determination (MYPD6).

We call on NERSA to immediately address South Africans’ urgent concerns and restore confidence in the energy regulatory process. South Africans deserves a clear, open, and accountable approach to energy regulation.

Regards

Kevin Mileham MP
DA Spokesperson on Electricity & Energy