Electricity and Energy Minister Kgosientsho Ramokgopa has revealed government will oppose tariff hikes from Eskom that are above 20%.

The minister made this announcement at the Windaba Conference in Cape Town on Thursday.

He acknowledged that the proposed tariff could have huge implications and could erode the disposable income"of households and businesses in South Africa.

"The poor will have to choose between buying a loaf of bread or replenishing their electricity. We do not want to get to that stage (and) we need to resolve this," he noted.

Eskom needs around R446 billion for the 2025/26 financial year and has proposed a controversial tariff hike that includes an astronomical 36.15% increase for 2026, followed by additional hikes in 2027 and 2028.

For Eskom’s direct customers, the proposed price hikes average 36.15% from April 1, 2025 to March 31, 2026, followed by 11.81% from April 1, 2026 to March 23, 2027, and 9.10% from April 1, 2027 to March 31, 2028.

Eskom has also sent its multi-year price determination tariff request to the National Energy Regulator SA (Nersa) for approval.

The electricity minister said in addition to opposing the Eskom tariff hikes government will also delay the rollout of carbon taxes beyond 2026.

The carbon tax will be applied to Eskom from January 1, 2026. By delaying its implementation, Ramokgopa has some leverage over Eskom, provided he gets assistance from the Minister of Finance, Enoch Godongwana.

A petition against the hike

The possible tariff hike has sparked alarm among South Africans.

In late September the Democratic Alliance (DA) initiated a petition against the hikes, which has already collected over 100,000 signatures.

DA MP and spokesperson on Energy and Electricity Kevin Mileham condemned Eskom’s tariff hike proposal as “outrageous”.

“These increases threaten households, businesses, municipalities and the broader economy,” Mileham said.

The Congress of South African Trade Unions (Cosatu) has also urged Nersa to reject Eskom’s tariff increase.

The trade federation’s national spokesperson, Zanele Sabela, said the proposals were unaffordable, arguing they would severely impact both businesses and the livelihoods of citizens.

IOL BUSINESS

#south-african-energy-crisis

Ramokgopa warns Eskom's proposed tariff hikes could erode household income - says no to anything above 20%