Statement by Kevin Mileham MP – DA Spokesperson on Electricity and Eneregy:
The DA has drafted a new Bill that will stop unfair electricity price hikes. A notice to introduce this Bill has been published in the Government Gazette.
The DA is using our place in Parliament to fight against unreasonable and unfair electricity price hikes, and we are making it possible for the people of South Africa to join this fight – via an opportunity to comment on this Bill.
Currently the astronomical price hikes we are forced to accept include us paying extra for Eskom and NERSA’s calculation mistakes, the recovery of arrears, and guesstimates of the cost to supply electricity.
This is patently unacceptable. No South African struggling to make ends meet should be forced to pay for the mistakes of Eskom or NERSA, and no South African should be forced to pay for guess-work by municipalities about what it might cost to supply power for the coming year. Instead, this must be replaced by actual cost-of-supply calculations.
This is part of the cost of living crisis in South Africa, and it is a part that the DA is going to fight against.
Now that our Draft Bill is published, the DA is calling on the public to submit comments on it – so that working together we can advance this Bill through parliament to protect South Africans from unfair electricity tariff increases. Together we can take a stand.
Electricity prices have risen well above inflation for years, placing increasing pressure on households and businesses.
What becomes unreasonable is that consumer are expected to pay for billions of rands in additional costs because of errors in electricity tariff calculations. Every unit of electricity, or every bill received, contains a big portion of paying back for mistakes made in last year’s tariff.
The recent R54.7 billion correction to Eskom’s revenue determination illustrates the problem. Errors in NERSA’s calculations have resulted in further increases being included in future electricity tariffs, including the 8.83% increase approved for 2027/28.
Consumers of South Africa had no part in making those errors, yet we are expected to pay for them with no apology. When regulatory mistakes of this magnitude can be passed on to consumers, there is clearly a gap in the protections provided by our existing laws. The DA seeks to close this gap.
The courts have already found fault with NERSA’s approval of increases without properly verified cost information and adequate public participation.
The DA’s Bill (The Electricity Regulation Amendment Bill) proposes changes to the Electricity Regulation Act to prevent similar situations from arising in future. We are doing this to protect consumers in South Africa’s
The Bill will close these loopholes by requiring that tariff applications must be supported by a scientific and demonstrable cost-of-supply study, which NERSA would be required to verify and publish for public comment; it will prevent tariffs being applied retrospectively; and affirms the legal principal of finality, thus requiring judicial review for amendments to approved tariffs.
Electricity suppliers need sufficient revenue to maintain their infrastructure and provide a reliable service. We do not dispute that. They are entitled to recover reasonable costs. But those costs must be properly established and verified before consumers are asked to pay more, not guesstimated and made up.
Going forward, the DA calls for public engagements on the Bill, to ensure that we work together to prevent South Africans from paying for the mistakes made by NERSA and Eskom.
The draft Bill is now open for public comment. Written submissions may be sent to electricityrabill@parliament.gov.za, copied to legislation@da.org.za by 15 November 2026.
South Africans should be able to trust that electricity tariffs in future will be based on actual costs, not used to cover up mistakes they had no part in making.
Leave a Reply