The impact of Eskom's bailout reduction on SA households

SOUTH Africa's energy crisis has long placed households and businesses under immense financial strain.

- REIN SNOECK HENKEMANS.

Now, with the latest announcement in the 2025 National Budget Speech that government will be reducing Eskom’s bailout package, that burden is set to increase even further.

While this decision may appear to signal a shift towards financial sustainability, the reality is that the costs are simply being offloaded onto consumers through rapidly escalating tariffs, higher fixed charges, the looming imposition of registration fees, and the removal of critical tax incentives. With no clear plan in sight to address the issue of energy affordability, South Africans must ask: How much more will they be expected to pay before real solutions are introduced?

Rising tariffs and charges

The Budget Speech emphasised the government's commitment to stabilising the electricity supply and fast-tracking energy reforms through Operation Vulindlela.

This includes a pipeline of projects expected to add 22 500 MW of new generation capacity, with over 10 000 MW already registered with National Energy Regulator of South Africa (Nersa). However, while large-scale projects are crucial, these solutions do not address the growing financial hardship facing consumers and businesses.