KEY POINTS
- DA mayors oppose Eskom’s approved electricity tariff increase
- NERSA approved 8.76% hike from April and about 9% for municipalities from July
- Eskom says increase needed for infrastructure, reliability, and subsidies
Mayors from several Democratic Alliance-led, DA, municipalities have mounted a coordinated challenge against Eskom’s latest electricity tariff increases, calling on the National Energy Regulator of South Africa to reject the approved hikes.
The intervention follows the regulator’s decision to allow an average 8.76% increase for Eskom’s direct customers effective April 1, 2026, with municipal bulk purchasers expected to implement increases averaging 9.01% from July 1.
Eskom has defended the tariff adjustment, saying the additional revenue is necessary to sustain operations, maintain infrastructure, and ensure reliable electricity supply. The utility added that the increase would also support subsidised tariffs for low-income and rural customers through affordability and electrification charges.
The power utility further cited improvements in its generation fleet, noting that the Energy Availability Factor has risen to 65.85% year-to-date. Eskom said baseload units are now available more than 98% of the time compared to significantly lower levels two years ago, arguing that operational gains justify a stable pricing framework.
However, DA mayors from Drakenstein, Langeberg, Swellendam, Breede Valley, and the Cape Winelands District have formally written to the regulator demanding that increases of up to 10.5% be halted. They argue that Eskom’s own financial disclosures show signs of recovery and a return to profitability, making above-inflation tariff hikes unjustified.
The party warned that households, municipalities, and small businesses are already under pressure from rising living costs and cannot absorb further increases. It also called for greater transparency and broader public participation in tariff decisions, saying communities should have meaningful input into pricing changes that directly affect their cost of living.
Business Leaders Expresses Concern Over Financial Impact
Business leaders have also expressed concern over the financial impact of higher electricity costs. SolarAfrica’s head of commercial, Brandon Horn, said the increase could significantly affect commercial and industrial users.
He estimated that a business consuming about one million kilowatt-hours monthly could face annual cost increases of roughly R2.17 million, with peak winter charges adding up to R200,000 per month.
Horn warned that the tariff hikes could coincide with potential fuel price increases, compounding pressure on transport, logistics, and operational expenses. He advised companies to diversify energy sources by combining solar, battery storage, wheeling arrangements, and energy trading solutions to reduce reliance on Eskom.
The DA said it may escalate the matter through parliamentary oversight if necessary, insisting that consumers should not be forced to “pay more for less” after years of rolling blackouts and rising electricity prices.
