NERSA Must Reject Eskom’s Proposed Tariff Hike

Dear Editor

On the eve of NERSA’s decision, the DA calls on the regulator to put an end to this madness. South Africans should not be forced to pay for Eskom’s failure to get its house in order.”

The Democratic Alliance (DA) makes its final and unequivocal call for the National Energy Regulator of South Africa (NERSA) to reject Eskom’s proposed tariff increase, set to be announced soon. On the eve of this critical decision, South Africans are facing an already unbearable cost of living, and any further increases to electricity tariffs would be a reckless, unjustifiable burden.

The DA’s opposition to Eskom’s tariff hike has been made clear at every step, and with the imminent announcement, we call on NERSA to stand with South African consumers and businesses – not Eskom’s mismanagement.

The latest Auditor General’s report on Eskom’s Annual Report and Financial Statements highlights severe financial mismanagement and operational failures that cannot be ignored. Eskom continues to bleed money through criminal conduct, irregular expenditure, and fruitless and wasteful spending. Rather than addressing these foundational problems, Eskom is seeking to burden the public with even higher prices. The DA firmly believes that no tariff hike should be approved until Eskom demonstrates real accountability, slashes its wasteful costs, and implements transparent financial controls.

Furthermore, according to the AG’s report, Eskom’s operational performance remains woeful, with the Energy Availability Factor (EAF) at a dismal 54.46%, far below the 80% target and a continued decline from previous years. This failure to improve its operational efficiency calls into question whether higher tariffs would even result in better service delivery. The truth is, increasing tariffs will only worsen the financial strain on households and businesses without addressing the root cause of Eskom’s failure—the management crisis at the heart of the utility.

The mounting municipal debt crisis further underscores the inefficacy of raising tariffs. Eskom has failed to collect billions in unpaid municipal debts, making it clear that the utility’s financial challenges stem as much from poor revenue management as they do from insufficient funding. Raising tariffs without addressing the chronic inability to collect payments will only fuel a cycle of bad debt, illegal connections, and further infrastructure collapse.

In response to Eskom’s reckless attempt to push through this tariff increase, the DA has mounted one of our biggest ever national campaigns. Over 130 000 South Africans have already signed our petition, standing united with us in opposition to this unjustified hike. This groundswell of support highlights the growing public outrage and the widespread consensus that South Africans cannot afford to pay more for worsening service.

On the eve of NERSA’s decision, the DA calls on the regulator to put an end to this madness. South Africans should not be forced to pay for Eskom’s failure to get its house in order. The DA demands that NERSA reject Eskom’s request for a tariff increase and instead insist on meaningful reforms that address Eskom’s operational and financial failures before considering any further hikes.

Regards

Kevin Mileham MP
DA Spokesperson on Electricity & Energy