Eskom is set to increase its electricity tariffs next week, April 1, 2024, resulting in a significant uptick in monthly electricity bills for South Africans.
Residential Homeowner rates are expected to rise by approximately 12.7% across the board.
The National Energy Regulator of South Africa (Nersa) gave the green light to a 12.74% electricity tariff
hike for the 2024/25 financial year back in January 2023.
This approval coincided with last year's electricity price hike of 18.65%, notably lower than Eskom's requested 32.02% increase.
Nersa justified its decision by citing approved revenues of R318 billion for the 2023/24 financial year and R352 billion for the 2024/25 financial year. Despite Eskom's request for more, it welcomed Nersa's decision.
Calib Cassim, the chief financial officer at Eskom, said that the approved revenue determinations for the financial years 2024/25 would facilitate a transition towards pricing that better reflects the efficient cost of electricity production.
Nersa voiced concerns over Eskom's reliance on emergency generation capacity, particularly the use of diesel in open-cycle gas turbines, and the declining energy availability factor of the power utility's plants.
The price hikes drew criticism, prompting the Democratic Alliance (DA) to petition the High Court to intervene and halt the increases.
The opposition party deemed the hikes "astronomical," warning that they would render electricity unaffordable for many South African residents.
In December 2023, however, the High Court in Pretoria dismissed the application, ruling in favour of Nersa and thereby upholding the price hikes.
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