ActionSA has strongly condemned the impending electricity tariff increases, warning that the proposed hikes will push struggling South African households deeper into financial hardship. During an urgent parliamentary debate, ActionSA Member of Parliament Malebo Kobe criticized both Eskom and the National Energy Regulator of South Africa (NERSA) for their roles in approving the tariffs, which are set to rise by more than 40% next year.
Kobe highlighted that Eskom has requested a 36.15% tariff increase, and NERSA’s decision to allow the state utility to recover an additional R8 billion from its Regulatory Clearing Account will result in a further 4% hike. “These combined increases will make basic electricity an unaffordable luxury for millions,” said Kobe, emphasizing the crippling impact this will have on households, businesses, and the fragile economy.
According to ActionSA, Eskom’s tariffs have skyrocketed by 450% between 2007 and 2022, vastly outpacing inflation, which rose by only 129% over the same period. This increase has strained household budgets, forcing many South Africans to choose between paying for food or electricity. The party attributes these rising costs to inefficiencies within Eskom, which it says continue to pass the financial burden of corruption and mismanagement onto consumers.
Kobe also singled out municipalities, accusing them of exacerbating the crisis by imposing exorbitant surcharges and tariffs. The City of Cape Town, for instance, has raised tariffs by 9.6% in 2022/2023 and 17.6% in 2023/2024—far above NERSA’s approved limits. Similarly, Buffalo City has implemented a 12% tariff hike, along with steep availability surcharges that will see prepaid customers paying R432 per month and post-paid customers paying R763 per month.
ActionSA is calling for the planned tariff increases to be scrapped, proposing urgent reforms to the country’s energy system. The party is advocating for Eskom to improve its operational efficiency, crack down on corruption, and address issues like cable theft, illegal connections, and municipal mismanagement. Additionally, ActionSA is pushing for the decentralization of the energy market by empowering municipalities to develop microgrids and renewable energy projects. This, they believe, would reduce reliance on Eskom, promote competition, diversify energy supply, and alleviate the financial burden on consumers.
“ActionSA rejects these increases and will continue to fight for an affordable, stable, and sustainable energy system,” said Kobe, pledging the party’s commitment to driving reforms that benefit South Africans.