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

(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.