Industry urges clarity on Eskom tariffs over electricity pricing

Energy users group warns power utility that ongoing uncertainty remains an obstacle to economy

- BANELE GININDZA

THE Energy Intensive Users Group (EIUG) on Wednesday said the power utility now faces challenges in containing operational and primary energy costs, which are projected to rise between 5% and 15% in the 2025/26 financial year, even as electricity sales volumes are expected to decline by 2–3%. DUMISANI SIBEKO Independent Newspapers

THE Energy Intensive Users Group (EIUG) has warned that ongoing uncertainty about South Africa's electricity tariff path remains a key obstacle to growth, industrial stability and investor confidence.

The caution comes after Eskom on Tuesday reported a R16 billion profit for the 2024/25 financial year, a dramatic turnaround from a R55bn loss the previous year.

The EIUG on Wednesday said the power utility now faces challenges in containing operational and primary energy costs, which are projected to rise between 5% and 15% in the 2025/26 financial year, even as electricity sales volumes are expected to decline by 2-3%.

Fanele Mondi, CEO of the EIUG, said the group welcomed assurances from Electricity and Energy Minister Kgosientsho Ramokgopa that current market reforms will not be reversed.

"The announcement by Eskom CEO, Dan Marokane, to stay litigation with Nersa on trading licenses to allow for consultation and dialogue is also encouraging," Mondi said.