Eskom price hike will further strain consumers: Analyst

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Energy expert Sampson Mamphweli says although Eskom’s new tariff increase is justified, it will put further financial strain on consumers.

Starting tomorrow, consumers will pay an additional 12,74% for electricity.

The National Energy Regulator of South Africa (Nersa) approved the tariff increase last year.

Mamphweli says the electricity tariff increase will affect the working class the most

“There is an additional 25.24%, which is what they call an affordability subsidy. This basically means that those who can afford it will have to subsidies the poor by an additional 25.24%. What this then means is that it becomes cheaper to use alternative sources of energy.”

Nersa approved the electricity tariff hike for the 2024/25 financial year in January 2023.

Eskom spokesperson Daphne Mokwena says electricity tariff increases for local municipalities will come into effect from the 1st of July this year.

“Local authority tariffs charges from the period 01 July 2024 to 30 June 2025 a percentage increase of 12.72%. Eskom direct customers from the period 01 April 2024 to 31 March 2025 all tariff charges except the affordability subsidy charge a percentage increase of 12.74%. Affordability subsidy charge a percentage increase of 25.24%. The average increase applied to the key industrial and urban tariffs will be 13.29% due to the increase in the affordability subsidy charge.”

Nersa announces decision on Eskom tariff increase: