Eskom has proposed a significant tariff hike of 36.15% for the 2025/2026 financial year. This proposal is currently under discussion and has sparked widespread concern among consumers and businesses already struggling with rising costs and loadshedding.
Story Summary:
- Eskom proposes a 36.15% electricity price hike for 2025/2026.
- The hike is part of Eskom’s plan to manage its massive debt and ensure financial sustainability.
- Consumers are already facing a 12.74% increase in 2024/2025, with further hikes expected.
Eskom wants to hike electricity prices by 36% in 2025
This proposed hike comes on the heels of the already approved 12.74% increase for 2024/2025.
The price increase is intended to help Eskom manage its substantial debt and ensure the utility’s financial sustainability.
The utility’s debt has ballooned over the years, contributing to its need for higher tariffs.
Eskom has been under a financial strain, exacerbated by ongoing maintenance issues, ageing infrastructure, and frequent loadshedding, which, admittedly, has been scarce since earlier this year.
The proposed increase is also tied to Eskom’s efforts to recover costs through the Regulatory Clearing Account (RCA), which allows it to adjust tariffs based on actual expenses versus what was previously approved by the National Energy Regulator of South Africa (NERSA).
In January 2024, NERSA approved a 12.74% increase for Eskom direct customers, which took effect from April 2024.
For municipal customers, the increase started in July 2024.
These hikes are already a concern for many South Africans, who have seen electricity prices triple over the past 14 years, while the country continues to suffer from frequent power outages.
The proposal for the 36.15% increase in 2025 is still under discussion, with a parliamentary debate expected to address its potential impact.
If approved, the hike could push electricity prices up by over 40%, considering additional adjustments from the RCA.
This has raised alarms among consumers and stakeholders, who fear the impact on an already strained economy.