Consumers can expect some highs and lows over the next week, as a repo rate announcement, Eskom’s tariff hike announcement and a looming petrol price increase will all hit between Thursday, 30 January and Wednesday 5 February.

Starting with a double bill on 30 January, the Reserve Bank and the National Energy Regulator of South Africa (NERSA) are taking to the stage at 3 pm to announce the repo rate and approved Eskom tariff hike, respectively.

The good news

For homeowners and those in debt (although savers and pensioners will not share in the joy), it is widely expected that the Monetary Policy Committee (MPC) will decide on another 25 basis point reduction in the repo rate. This would be the third time in a row that the bank will lower rates by 25 basis points and will bring the interest rate down to 11%.

It’s all to do with the current favourable inflation rate (sitting at 3%), which is well within the MPC’s target band of between 3 and 6%, and well below the 4.5% mid-point target.

The inflation outlook is also looking relatively stable for the rest of the year, but the Reserve Bank is likely to maintain its conservative approach, and Governor Lesetja Kganyago will be at pains to explain the risks to inflation, which includes the imminent Eskom tariff hike.

The bad news

NERSA has been busy evaluating Eskom’s sixth multi-year price determination (MYPD6) revenue application over the last several weeks.

Eskom wants a tariff increase of 36% this year, 12% for 2026 and 9% in 2027/28.

The power utility has argued it needs the increases to cover costs linked to energy production, infrastructure maintenance, and outstanding debts.

But Eskom has faced severe backlash from businesses, communities, households, political leaders, civil society and the City of Cape Town over the proposed hikes, which they say will only worsen the cost of living crisis in the country.

The Minister of Electricity and Energy Kgosientsho Ramakgopa also spoke out against a 36% electricity tariff hike for 2025, saying he believes NERSA will not approve it, and will grant Eskom a lower tariff hike rate.

Carpool anyone?

To add to the misery, the month of love is also set to kick off on a sour note for vehicle owners, as the latest data from the Central Energy Fund points to hefty fuel price increases.

While prices are yet to be fixed, the most recent data shows that diesel is set to soar by around R1 per litre, while petrol could rise by about 90 cents per litre.

The Department of Mineral Resources and Energy will announce the final prices closer to next Wednesday, 5 February when the increases kick in.