The Midvaal local municipality is concerned about Eskom’s proposed tariff hike of 40% and has demanded urgent engagement. Picture: Dean Hutton / Bloomberg
The Midvaal local municipality in Gauteng, says it has written a letter to Eskom and Nersa, opposing the power utility’s proposed 40% tariff hike for the next three years.
This comes after Eskom has filed its revenue application for the 2025/26 financial year to the National Energy Regulator of South Africa (Nersa).
Nersa has confirmed that it has received the Eskom Sixth Multi-Year Price Determination (MYPD6) revenue application for the 2025/26, 2026/27 and 2027/28 financial years.
The municipal spokesperson, Idah Satikhe, says they have also requested an engagement with Eskom to discuss their dissatisfaction on behalf of the people of Midvaal.
Satikhe says Eskom has reportedly submitted a proposal to Nersa for tariff increases of 43.55% in 2026, 3.36% in 2027, and 11.07% in 2028.
Instead of implementing institutional reforms, Satikhe says that the power utility is shifting the burden of these costs onto paying customers.
“South Africans cannot be held liable for increases that may arise due to years of mismanagement, patronage, and inefficiencies. It is unfair to ordinary citizens that they are now paying the price for this.”
South Africa has one of the highest electricity rates in the world.
According to the latest report on electricity, the average electricity rate for households in the country is about R3.29 per kilowatt-hour, which is 16.2% higher than the global average of R2.83 across 144 countries.
Reports indicated that Eskom’s electricity prices were among the cheapest in the world, but that took a sharp turn in 2007, when the first loadshedding occurred.
Satikhe says that ordinary people are already grappling with this year’s 12.72% plus increase, citing that the proposed 40% increase by Eskom will have a catastrophic impact on low-income and middle-class households.
“Many South Africans are already struggling to afford the current high cost of living, and an increase of this magnitude will push them further into poverty.
“Businesses, especially Small, Medium and Micro Enterprises (SMMEs), which are the backbone of the country’s economy will also be adversely affected.”
Satikhe explained that these businesses are already struggling to remain stable, and the potential increase in operational costs will further cripple them.
“The South African economy has experienced stagnant and non-existent growth. Additional electricity price hikes will discourage investors from setting up businesses in the country.”
This will negatively impact any prospects for economic development, Satikhe says.
“When the economy is not growing, it means more people will be without jobs. The ripple effect of this will further exacerbate our already existing socio-economic challenges, such as poverty, crime, and economic inequality.”
Satikhe has urged Eskom and Nersa to engage with municipalities and find workable solutions, as well as consider the realities that many people encounter.
IOL