Parliament to Address Eskom’s Controversial Electricity Rate Hike

In response to the Democratic Alliance’s (DA) request, National Assembly Speaker Thoko Didiza has scheduled a parliamentary debate on Eskom’s proposed 36% electricity tariff increase. This debate will scrutinize the National Energy Regulator of South Africa’s (Nersa) decision to allow Eskom to impose a significant rate hike and a controversial ‘make-up tariff’ to recover previous revenue shortfalls.

The DA, having opposed Eskom’s proposed increase, has mobilized significant efforts to challenge it. Their mayoral caucus has submitted formal objections to Nersa and initiated a petition aimed at rallying public support against the hike. The party’s spokesperson on electricity, Kevin Mileham, confirmed that Didiza has agreed to address the urgent issue in Parliament. This debate will particularly focus on the legality of the ‘make-up tariff’—a mechanism that allows Eskom to recover an additional R8 billion through what it terms a ‘regulatory clearing account’.

The controversy surrounding Eskom’s proposed tariff increases has been brewing for some time. According to a June report by Daily Maverick, Eskom planned to request a tariff increase of up to 44%, with potential implementation as early as April 2025. The utility proposed incremental increases for subsequent years: 36.15% for 2026, 11.81% for 2027, and 9.10% for 2028. These increases would affect non-municipal customers who deal directly with Eskom.

Mileham has criticized the proposed hikes, arguing that they would exacerbate the already dire financial situation of many South Africans. He warned that if Nersa approves the increase and the additional R8 billion recovery charge, many households could face severe financial strain. For example, consumers currently paying R900 per month for electricity could see their bills rise to R1,260.

The DA’s opposition is not limited to parliamentary debate. The party’s national caucus of local governments, including municipalities like uMngeni, Mossel Bay, Langeberg, and Hessequa, has officially opposed the tariff increase, sending affidavits to Nersa to express their concerns. Additionally, the DA has launched a petition aiming to gather 50,000 signatures to further demonstrate public discontent. As of Sunday, the petition had already secured over 11,000 signatures.

This parliamentary debate marks a significant step for the DA in their campaign against the proposed increases, reflecting their commitment to protecting financially struggling households from what they view as exorbitant electricity costs. The party’s efforts include both legislative actions and grassroots mobilization to counter Eskom’s proposed tariffs and the associated financial burden on South African consumers.