South Africa’s parliament will debate a proposal from the National Energy Regulator of South Africa (NERSA) to increase Eskom electricity tariffs by as much as 40% next year, Cape {town} Etc reports.
This is according to a press statement issued by the Democratic Alliance (DA).
National Assembly Speaker Thoko Didiza confirmed that officials will discuss the legality of the energy regulator’s decision to allow Eskom adding an R8 billion ‘make-up tariff’ in 2025.
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In addition, Eskom also plans to request that NERSA ‘approve a further 36% increase’ in electricity tariffs next year.
In the past 14 years, electricity prices have roughly tripled in South Africa, even as sustained power cuts in Africa’s most industrialised economy have ‘stagnated growth’, according to The Daily Investor.
‘The potential impact of a 40% electricity tariff increase is horrendous for South Africans already struggling under a cost of living crisis,’ said Kevin Mileham, a DA member of parliament.
‘South Africans shouldn’t have to pay for Eskom’s inefficiency. We have taken this fight to Parliament to lower electricity tariffs before the 40% hike […] No one should have to choose between putting food on the table or keeping the lights on,’ Mileham added.
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The debate originates from Electricity Minister Kgosientsho Ramokgopa, who is driving the implementation of a new ‘electricity pricing plan’.
The plan’s main goal is to ‘provide a solution to energy poverty’ in the country, whereby people cannot afford electricity, as well as to tackle the rising cost of power in the country.
Recently, Ramakgopa provided an update regarding the implementation of the Energy Action Plan (EAP), which also outlined the new focuses of his ministry.
‘Our electricity pricing plan needs to kick in, and that is the primary preoccupation of the ministry now, working with Eskom’s Distribution division and municipalities,’ said Ramokgopa.
More engagements will also be held with NERSA about ways to limit the increasing cost of electricity and expand ‘access to affordable energy’.
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Ramokgopa also stated that industry players, which include municipalities and Eskom, are committed to ‘finding a solution’ to the rising cost of electricity in South Africa.
South Africans will have to pay five times more for electricity in 2025 than in 2010, following the implementation of inflation increases that have been repeated over the years.
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