Mon. Jan 18th, 2021

Eskom: Major municipalities set for 15% hike in electricity tariffs

Eskom tariffs hikeThe cheek of it all, eh? Fresh from securing a 9.41% tariff increase in March, Eskom are now targeting municipalities with a 15.63% hike.

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The greed at Eskom has expanded yet again this week, after the City of Johannesburg confirmed that a 15.63% tariff hike is set to come into force. In an official statement, Mayor Herman Mashaba lambasts energy regulator Nersa for their “disappointing correspondence”, which expresses the need to jack-up our electricity prices.

Eskom: Municipalities set for a separate price hike

The news comes just a couple of months after Eskom were given permission to increase their rates by 9.41% in 2019. In total, they’ve been given the green-light to put rates up by 22% over the next three years. However, the power utility has no shame when it comes to raiding the pockets of South African citizens.

Eskom’s problems are extensively well-documented, and their ability to use money wisely has been severely questioned. In fact, two international lenders have already withheld payments in the last month, due to their doubts over how the cash will really be spent.

Herman Mashaba blasts rising tariffs

Almost inexplicably, the 15.63% hike has been granted by Nersa on top of their previous increases. Mashaba is livid with all parties involved, and vowed to take the regulator and the power giants to the SA Human Rights Commission (SAHRC) in a bid to overturn their decision:

“Municipalities across South Africa will now face a 15.63% tariff increase from Eskom. This decision means that the City of Johannesburg, like many other municipalities, will be forced to increase tariffs on electricity.”

This new increase represents a disappointing ruling that will only increase the hardship for businesses and citizens alike. The cost of corruption and maladministration is set to be visited upon our poorest residents, which is why I will write to the SAHRC seeking an urgent investigation into the matter.”

Herman Mashaba

How much will electricity prices rise by in Johannesburg?

City Power had planned to absorb some of Eskom’s increases, but ultimately, residents of Johannesburg will face a hike of 13.07%. It’s slightly better than the blanket 15.63% all municipalities are expected to be hit with, but the damage will still take its toll on those who are barely surviving at the current rates.

Mashaba finished by saying that every citizen “has a right to electricity”, and although it is not mentioned in South Africa’s Constitution, he believes that every government is obliged to keep every single home illuminated.

  • You can read Mayor Mashaba’s full statement of Eskom’s planned tariff hikes for municipalities here:

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