
UASA Media Release: 31 January 2025
Image source: www.africa-energy.com
Statement by Abigail Moyo, spokesperson of the trade union UASA:
The upcoming electricity tariff increase from Eskom granted by the National Energy Regulator of South Africa (Nersa) for implementation on 1 April is a cause for concern for consumers who must constantly adjust their household spending to keep their lights on.
The expected tariff hike is 12.47%, and a further approved increase of 5.3% and 6.19% for Eskom’s 2026/27 and 2027/28 financial years. Although the approved increase is lower than the 36.15% tariff increase that Eskom requested, the increase remains a financial setback for consumers who also faced municipal tariff hikes last year.
It is pleasing that the utility made a profit of R16 billion in the first six months of 2024 and that the load-shedding woes have since improved. This gives hope to South Africans as the power utility is progressing and recovering from the previous challenges it has faced.
However, electricity is a basic need for households and businesses as housing and utility expenditures regularly appear as primary contributors to consumer price inflation (CPI); thus, it must remain affordable. With tariffs hitting a new cost bracket most ahead of winter when cooking and heating become more costly for consumers, this cost margin remains a concern.
This tariff hike will result in additional operational costs for mining, industries and small businesses, which can halt business operations and trigger restructuring or retrenchments again. Moving forward, we urge the energy regulator to seriously consider the needs and the affordability outlook of consumers when looking into the pricing of regular services, we have already seen large parts of our communities enduring increasing levels of energy poverty.
UASA encourages its members to consider their financial positions and plan ahead for the anticipated costs and their impact on their households.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.