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Tuesday, November 26, 2024

Eskom tables massive 2025 electricity price hike application

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Eskom has officially tabled its application with the National Energy Regulator of South Africa (NERSA) for multi-year tariff hikes until 2028, starting with a proposal to hike prices next year by a whopping 36.15%.

 

The power utility says NERSA has published its application, and the Regulator will now embark on a public participation process before it makes a decision.

 

Eskom is applying for total revenues of:

 

  • R446 billion for the 2026 financial year
  • R495 billion for 2027, and
  • R537 billion for 2028.

 

The proposed average price increases for Eskom direct customers are:

 

  • 36.15% (1 April 2025 to 31 March 2026)
  • 11.81% (1 April 2026 to 31 March 2027) and
  • 9.10% (1 April 2027 to 31 March 2028)

 

Eskom says these increased revenues are needed to ensure an improvement in the financial sustainability of the power utility, and to ensure customers can continue to provide electricity to its customers efficiently.

 

Any decision made by NERSA will be implemented from 1 April 2025, and will affect Eskom’s direct customers. Municipalities increase their tariffs based on these approved hikes from 1 July each year.

 

The Chief Financial Officer of Eskom Calib Cassim has urged as many stakeholders as possible to become involved in the public participation process, the details of which are yet to be announced.

 

“As NERSA makes its decision, it will consider affordability for identified vulnerable sectors including indigent customers and certain industrial sectors. Eskom has made its revenue application based on the costs it will incur to efficiently provide electricity to the customer and it is a critical component in ensuring Eskom continues to provide reliable electricity services while improving its financial sustainability, through a migration to cost-reflective prices.”

 

 

The application can be accessed on the NERSA website. It will also be made available on Eskom’s website.

 

 

ALSO READ: Hill-Lewis rejects Eskom’s planned 44% tariff hike for Municipalities

 

Liesl Smit
Liesl Smit
Liesl is the Smile 90.4FM News Manager. She has been at Smile since 2016, with nearly 20 years experience in the radio industry, including reading news, field reporting and producing. In 2008 she won the Vodacom Journalist of the Year Award, Western Cape region. liesl@smile904.fm

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