Brace for yet another electricity hike

Brace for yet another electricity hikeEskom informs Parliament of the plan for electricity tariff increases of 8.83% for customers supplied directly by the power utility and 8.84% for municipalities, effective from 1 April 2027Brian Sokutu13 OCT 2026, 15:242 min readShareFacebookXLinkedInWhatsAppEmailThe parliamentary standing committee on appropriations has expressed concern about Eskom’s proposed electricity tariff increases for the coming year, warning that increased electricity costs could deepen the financial pressures experienced by households.This, amid rising inflation, persistently high living costs and a stagnant economy.Briefing the committee on Tuesday, Eskom said its proposed electricity tariff increases of 8.83% for customers supplied directly by the power utility and 8.84% for municipalities, would be effective from 1 April 2027. The increases are to be subject to the approval of the National Energy Regulator of South Africa (Nersa). On municipal debt owed to Eskom, the state-owned utility said municipal debt stood at R122.5 billion as of August 2026.According to Eskom, defaulting metros have entered into payment arrangements that will take several years to implement, with their success dependent on continued payments and compliance.Committee members questioned the proposed tariff increases, arguing that they were inconsistent with the government's commitment to combating poverty and unemployment. MPs also raised concerns that higher interest rates and rising prices were exacerbating the affordability crisis faced by households and communities across the country.Committee chairperson Dr Mmusi Maimane, called for a closer examination of Nersa’s role in determining electricity tariffs and Eskom’s submissions requesting tariff increases. Maimane said that while the relevant committee could address operational matters, the standing committee on appropriations had a responsibility to scrutinise appropriated funds and ensure their effective and accountable use.He supported the proposal to pay the indigent electricity subsidy directly to Eskom, saying that would reduce administrative costs, strengthening the utility’s revenue collection and financial planning.“Rising electricity costs force households to choose between essential expenses such as school fees, food and electricity. “We therefore need decisions that balance financial sustainability with households’ ability to pay,” Maimane said.He also commended Eskom’s leadership for addressing load-shedding and improving electricity stability, noting that the utility’s achievements in reducing load-shedding deserved recognition.ShareFacebookXLinkedInWhatsAppEmailRelated TopicseskomelectricityenergyparliamenteconomyMentionsEskomNational Energy Regulator of South AfricaMmusi MaimaneStanding Committee on AppropriationsRead the full article at Mail and Guardian