Electricity 'unaffordable' as 12% price hike looms
An environmental group says it's clear that the energy regulator listened when concerns were raised about Eskom's initial tariff hike proposal.
The National Energy Regulator has given the utility the go ahead to raise prices by 12% this year - a far cry from Eskom's application for 36%.
The adjustment will take effect from April, with municipalities introducing the changes in July.
"We are appreciative that Nersa does listen but we will continue to push for a tariff restructuring which sees more affordable electricity price,” said the Green Connection’s Liz Mcdaid.
The power producer will be allowed to hike costs by 5.36% and 6.19% in the following two financial years.
There's been a mixed reaction to the adjustments.
READ: Eskom granted 12.7% tariff increase for 2025
Electricity Minister Kgosientsho Ramokgopa says while they are pleased that Eskom didn't get what it asked for - the cost to keep the lights remains unaffordable for many consumers.
The DA's Kevin Mileham has, meanwhile, rejected the increases altogether.
"The increase afforded to Eskom is three times the national inflation rate, and will put massive additional pressure on the prices of goods and services across the spectrum."
He says NERSA has chosen to pass on Eskom’s failure to manage its finances and operations to consumers.
