A new report has surfaced, detailing the profound electricity affordability crisis in South Africa, affecting an estimated 20 million citizens.
More than 20 million South Africans can’t afford electricity, amid new tariff hikes
The FinScope Consumers South Africa 2023 Survey has uncovered that close to 20 million South Africans are currently struggling to afford electricity.
This significant number represents a large portion of the population who face daily challenges in accessing stable and affordable energy.
Issues such as regular power outages and the inability to pay electricity bills exacerbate the situation, leading to frequent electricity disconnections.
What are the Eskom tariff hikes for 2024?
These insights emerge on the heels of Eskom announcing a series of tariff hikes effective from 1 April 2024.
Direct customers of Eskom will see an average increase of 12.74% in their electricity tariffs.
This increment is part of a broader adjustment that includes a substantial 25.24% rise in the affordability subsidy charge, particularly impacting the Homelight 20A tariff which benefits lower-income households.
For local authorities, the tariff adjustment is set at 12.72%, beginning on 1 July 2024. This change is expected to trickle down to consumers through increased municipal electricity bills.
Furthermore, the industrial and urban sectors are bracing for a 13.29% hike, primarily due to the increased affordability subsidy charge.
What the study says about working adults in South Africa
The FinScope 2023 survey also sheds light on the employment scenario among South African adults.
The findings indicate minimal growth in formal sector employment over the past two decades, with numbers marginally increasing from 8.7 million in 2003 to just 8.9 million in 2023.
Conversely, the informal sector has seen a significant rise, doubling in size from 4 million to 8.5 million within the same period.
