Eskom's 18% electricity price hike: A looming crisis for South African families

The steep electricity price increases approved by the National Energy Regulator of South Africa (Nersa) for Eskom are unaffordable and could push families further into poverty and even lead to starvation.

Furthermore, they are likely to cause non-payment and theft of electricity to spike dramatically.

That is the warning coming from consumer organisations and energy experts following the compound 18% price hike imposed on consumers over the next two years.

The compound increase of 18.36% consists of an electricity tariff increase of 8.76% in 2026/27 and 8.83% in 2027/28. The increases stems from a miscalculation of previous allowable revenue for Eskom, necessitating the power utility to recover about R54 billion from consumers.

Mervyn Abrahams, director at the Pietermaritzburg Economic Justice and Dignity Group, said there is a direct link between high electricity prices and the affordability of food for many households across the country.

“We track 44 food items across different supermarkets in South Africa in what we call the Household Affordability Index to determine the general prices in major towns, cities, and provinces. In addition to this, we look at the factors that influence the affordability of food in relation to incomes and other costs such as transport, water, and electricity.

“For households, electricity is part of everyday activity, whether domestic or informal economic activity, and so the rise in the price of this commodity puts pressure on households. For instance, the preparation of meals and the ability to meet hygiene needs demand the use of electricity,” he said.

He said over the years, electricity prices have continued to reach unaffordable levels for many households, especially low-income families. "This means that, in many instances, households are forced to choose between paying for the high cost of electricity and feeding their families. This often results in compromising on food, especially essential and nutritious food, which has a negative impact on people’s health and development.”

Energy expert Chris Yelland warned in an interview that over the next four years, consumers should brace themselves as the situation is likely to get much worse with significantly above-inflation increases. He stated that the total amount Eskom seeks to recover due to previous miscalculations is a staggering R90 billion. He warned that non-payment and theft are likely to rise as a result, as many people will not be able to afford electricity.

EThekwini Ratepayers and Residents Association president Ish Prahladh said ratepayers are drowning in debt.

“The unemployment rate is so high, and huge corporations are shutting down. Another increase is going to cripple the ratepayer and residents. There seems to be no relief for the ratepayer and residents.”

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