As April 1st approaches, South African consumers are bracing themselves for an unwelcome surprise: a 12% electricity price increase from Eskom. What may seem like an April Fools' joke to some is a harsh reality confirmed by TimesLIVE.
Eskom, the national power supplier, had sought approval from the National Energy Regulator of South Africa (Nersa) for its retail tariff and structural adjustment application back in October of the previous year. After deliberation, Nersa decided on December 14, 2023, to greenlight the tariff increase for the 2024/25 financial year.
Effective April 1, 2024, Eskom's direct customer tariffs will see a rise of 12.74%, excluding the affordability subsidy charge. For local authorities (municipalities), the increase will kick in from July 1, 2024, at a rate of 12.72% until June 30, 2025.
The average increase, particularly impacting industrial and urban tariffs, is pegged at 13.29%, primarily due to the surge in the affordability subsidy charge. Eskom clarified that this charge serves as a subsidy to the Homelight 20A tariff, determined by Nersa. The disparity in tariff increases historically prompted the introduction of this charge, which is financed by non-municipal large industrial and urban tariffs.
"While there are no structural changes to tariffs for 2024/25, Eskom is contemplating a tariff restructuring submission to Nersa for potential implementation in the following financial year, 2025/26," stated an Eskom representative.
This announcement arrives amidst ongoing concerns over electricity affordability and the strain it imposes on consumers, especially amid economic challenges. The cumulative impact of consistent price hikes raises questions about the long-term sustainability of energy access for households and businesses across South Africa.
The looming price hike underscores the urgent need for broader discussions on energy policy, affordability mechanisms, and sustainable solutions to ensure equitable access to electricity while maintaining the financial viability of energy providers.
As South Africans gear up to face the reality of increased electricity costs, attention turns to how stakeholders will navigate these challenges and work towards a future where reliable energy remains accessible to all, without imposing undue financial burdens on consumers.
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