Eskom tariff still too high

PAIN: NOT MUCH TO CELEBRATE AS 12.7% HIKE IS THREE TIMES ABOVE THE INFLATION RATE

- Ina Opperman

Consumers who are relieved that Nersa did not allow Eskom's 36% tariff increase or the 18% analysts expected, must still contend with the fact that the 12.7% increase is three times the inflation rate.

Analysts expect Eskom to offset the rest of the increase it wanted by getting another bailout from National Treasury.

Organisation Undoing Tax Abuse CEO Wayne Duvenage, said they were somewhat relieved that the price increases were not as high as initially feared.

"However, the increase of 12.74% from 1 April [followed by 5.36% in 2026 and 6.19% in 2027], is still three times that of inflation and comes on the back of grossly inflated electricity hikes over the past 15 years, which has made the price of electricity out of touch with the economic realities of South Africans.

"While we expected Nersa to keep to the past traditional minimal reductions and approve an even higher increase, the reality is that this hike is still far too much for consumers and businesses already struggling to keep the lights on."

He said electricity prices had more than doubled since 2020.