Pretoria: Government is preparing to present an intervention regarding Eskom’s proposed tariff hike. This according to Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, who briefed the media on Wednesday.
According to South African Government News Agency, the power utility has asked the National Energy Regulator of South Africa (Nersa) to approve its multi-year price determination which would mean, for direct Eskom customers, a 36.15% electricity tariff hike for 2025/26, an 11.81% increase in 2026/27, and a 9.10% rise in 2027/28 – sharply bringing into focus electricity affordability and upping the cost of living. Nersa is currently holding public hearings on Eskom’s application.
“As government, we will be fashioning interventions to ensure that we provide relief. It’s still a process that is underway inside government. Before Nersa makes that determination, we’d have made our submissions. I want to say – with a degree of confidence – that we will get to a situation where we don’t realise a 36,
40% tariff increase. It should be something significantly lower than that. [This will be] taking into account the need for the industry to be competitive; the pressures that the households are experiencing,” said Ramokgopa.
The Minister reminded South Africans that the seventh administration has committed to ensuring that “we fight poverty and reduce the cost of living.” He emphasized the disproportionate impact of utility costs on low-income households and assured the public of significant relief interventions. “What that percentage [tariff increase] will be, Nersa will make that determination,” he added.
Ramokgopa insisted that despite government’s intervention, “we will not undermine the ability of Eskom to continue to operate.” He acknowledged some justification in Eskom’s application assumptions but expressed confidence in balancing Eskom’s operational needs with household relief.
The Minister encouraged South Africans to participate actively in Nersa’s public hearings on Eskom’s proposed tariff incre
ases, which are scheduled to continue in various locations across the country. The hearings aim to gather a multiplicity of views before Nersa makes its decision, expected on 20 December.