Eskom comes under fire at Nersa public hearings

The proposed Eskom electricity tariff hikes were heavily criticised by civil society and residents of Cape Town, during the two-day public hearing that was held by the National Energy Regulator of South Africa (Nersa).

Residents of areas such as Gugulethu, Khayelitsha, Mitchells Plain and Hanover Park were reacting to Eskom’s proposed 40% tariff increase and said it is unacceptable. Bulelwa Seti, a Gugulethu resident, said they were struggling to afford electricity as it is, and an increase would cripple them. “We hope that Nersa will not approve the application by Eskom. As it is, the electricity that we get is not enough and does not last. We are struggling. I am an unemployed mother of three kids and we survive on their social grant; I cannot afford to spend over R300 on electricity,” said Seti.

Speaking to Elitsha, Nersa spokesperson, Charles Hlebela said the hearings, which will be conducted around the country until early December, will inform whether they approve, on the 20th of December 2024, the proposed hike by Eskom. “Eskom has applied to increase electricity tariffs for the next three years. These hearings are part of the public consultation process. We want to get views and comments from members of the public in general. When we make the decision on Eskom’s application, these comments will be taken into consideration by the energy regulator,” said Hlebela.

What Nersa observed in Cape Town is that residents are concerned about the affordability of electricity. “Most of the presenters, said the proposed 40% hike is very high and they cannot afford it. That is the main issue that came out from the two days – communities cannot afford [the proposed tariff increase,” said Hlebela. Eskom’s revenue application amounts to R446-billion for the 2025/26 financial year, R495-billion for 2026/27 and R537-billion for 2027/28.

Another resident from Mitchell’s Plain, who also spoke to Elitsha, Betty Wilson said she relies on only her old age grant to buy food and electricity and a tariff increase would hurt her financially. “I am a pensioner. I support myself and my two grandchildren from the old age grant. We feel that the proposed 40% increase is unfair. The cost of electricity is too much; some days I have to decide whether I buy bread and not have electricity. This will worsen our suffering,” said Wilson.

In their defense, Eskom said the proposed increase in electricity is informed by the large amounts of money that Eskom needs in order to secure coal, and keep electricity on. “We will move to renewable energy, but it is going to take a while as the transition is also a challenge. It will happen over time, we also need the government to come on board. Eskom cannot solve the challenges it’s faced with alone,” said Eskom’s Caleb Cassim. He said the power utility has been “dependent” on government support in the form of debt and equity to a total amount of over R400-billion.

Grassroots community organisation, Cry of the Xcluded slammed the proposed tariff hikes and said it would worsen energy poverty. “South Africa’s extreme inequality means that millions lack stable income, surviving on informal or unstable jobs. Rising tariffs deepen energy poverty and force families to choose between electricity and food. Current reliance on private energy markets prioritises profits over essential needs,” they said in a statement.

The organisation is demanding that the government intervenes. “Fix Eskom and halt electricity privatisation. Enforce transparency and accountability in Eskom’s operations. Provide universal 350 kWh of free electricity per month. Invest in renewable energy and local manufacturing,” the Xcluded’s statement reads.

The hearings will also take place in Gqeberha, Bloemfontein, Durban, Mbombela, Polokwane, Klerksdorp and Midrand in the next few weeks.