KEY POINTS
- Eskom signals likely electricity price hikes, citing unfair industrial discounts.
- Utility faces rising debt and operational costs amid ongoing power instability.
- Rand steadies after earlier slump, but households brace for higher energy bills.
Eskom has warned South Africans to brace for further electricity price increases, saying that long-standing discounts given to big industrial users are shifting the burden of rising costs onto ordinary households. The state-owned power utility said it is reassessing its pricing structure as part of a broader review of how energy is subsidised across the economy.
Eskom’s Group Chief Executive said the utility could no longer sustain what he described as “unfair and outdated pricing arrangements” that allow large energy-intensive companies to pay significantly less for electricity. “The cost of maintaining and expanding South Africa’s power grid should not be borne disproportionately by families and small businesses,” he said, adding that the company is engaging regulators and industry players to restore “balance and transparency” in its pricing model.
Industrial Discounts Under Scrutiny as Eskom Pushes for Fairer Pricing
The comments mark one of the strongest signals yet that higher tariffs may be unavoidable next year. Eskom argues that the current pricing system, initially designed to attract investment and protect key industries, has become unsustainable amid rising fuel prices, operational expenses, and debt-servicing costs.
The utility is grappling with R400 billion in debt, ageing infrastructure, and an unstable generation network that continues to trigger rolling blackouts. Analysts say that unless tariffs are realigned, Eskom will struggle to recover costs and invest in upgrading the grid. But for consumers already battling inflation, unemployment, and high living costs, another increase in electricity prices would add to financial strain.
“South Africa’s households are effectively paying for corporate discounts,” said a Johannesburg-based energy economist. “While Eskom’s logic makes sense from a business standpoint, the political cost of further hikes could be enormous, especially heading into an election year.”
The National Energy Regulator of South Africa (NERSA) has not yet commented on the timing or scale of any adjustment but confirmed that discussions with Eskom are ongoing.
