Eskom is planning to increase electricity tariffs again next year, raising concerns over an affordability crisis in South African households.  

The power utility briefed Parliament’s Standing Committee on Appropriations on Tuesday, proposing an 8.83% increase for Eskom customers and an 8.84% increase for Eskom-supplied municipalities. While it intends for these increases to take effect from 1 April 2027, it is still subject to approval by the National Energy Regulator (NERSA). 

Eskom highlighted that R122.5 billion is still owed to the power utility by indebted municipalities.  

“According to Eskom, defaulting metros have entered into payment arrangements that will take several years to implement, with their success dependent on continued payments and compliance,” read the Committee’s statement.  

This comes just months after revised tariff hikes were implemented, with municipalities hit with a 9.01% increase and direct customers paying 8.76% more for electricity.  

In response, MPs have voiced frustration, noting that the proposed tariff increases fall short of the government’s commitment to combat poverty and unemployment.  

“Members also raised concerns that higher interest rates and rising prices are exacerbating the affordability crisis faced by households and communities across the country.”  

This has prompted Committee chair, Dr Mmusi Maimane, to more closely scrutinise NERSA’s role in determining electricity tariffs and Eskom’s requests. He said his committee is responsible for ensuring that there is an “effective and accountable use” of appropriated funds.  

“Rising electricity costs force households to choose between essential expenses such as school fees, food and electricity. We therefore need decisions that balance financial sustainability with households’ ability to pay,” said Maimane.