General Industries Workers Union of SA has requested National Energy Regulator of South Africa to reject Eskom’s proposed tariff increases. Picture: Ian Landsberg/African News Agency (ANA)
THE National Energy Regulator of South Africa (Nersa) has been asked to reject Eskom’s proposed tariff increases.
The General Industries Workers Union of SA (Giwusa) said the recent tariff hike earlier this year has already placed immense pressure on the poor, working, and middle class.
The independent union said municipalities further exacerbate the burden by passing additional costs to consumers.
The power utility has applied for a proposed 36% tariff increase for the 2025 financial year, 11.8% in the next, and 9.10% for 2027/2028.
The utility also pointed out that all other electricity users pay more to subsidise the companies benefiting from the negotiated pricing agreements (NPAs).
Nersa is expected to announce its decision on December 20.
In April, consumers suffered a blow after Eskom increased electricity prices by 12% for the 2024/25 financial year.
Giwusa president Mametlwe Sebei said the working class could not afford further increases.
He said this would deepen economic hardships and energy poverty already suffered by 45% of the entire population.
Sebei said Giwusa, which opposed the proposal in its submission in October, highlighted the devastating impact of rising electricity prices on the cost of living, small businesses, and the broader economy.
He said all would suffer should this tariff hike be approved.
Giwusa is the latest organisation to share its stance against Eskom’s proposed tariff increase.
In November, the DA expressed its deep concern over the rise in electricity costs over the past two years. The party said this placed a disproportionate burden on the country’s most vulnerable citizens.
The party said families were now forced to choose between keeping their lights on and meeting basic needs such as food and education.
For years, Eskom has operated without proper accountability, squandering resources and failing to deliver reliable electricity to the nation. The DA said that despite these failures, consumers were now expected to foot the bill for Eskom’s past mistakes.
The City Power also opposed the increase.
The utility submitted a report to the energy regulator objecting to the increase, saying it was too high.
The utility said the increase would pose significant financial challenges to municipalities and their customers.
It said this shouldn’t exceed 11% yearly.
In its submission, Giwusa highlighted that in today’s money, an average household could be spending only R638 a month on electricity based on the tariffs in 1996. Instead, they cost R2 948 today. Sebei said should the Eskom application be granted, this would increase to R4 015 a month next year.
He added that Eskom tariffs have increased five times more than the inflation rate in this whole period.
Sebei said the workers on minimum wage already spend 30% of their income on electricity and underspend by 52.2% on food after paying for electricity and transport.
“The crippling effects of electricity tariff hikes extend far beyond household finances. They're imperilling the very foundations of South Africa's economy, mainly through the acceleration of deindustrialisation, collapsing SMMEs and local farms, and job losses,” said Sebei.
He said his union would continue to argue the urgent need for a transition to publicly owned, cheap energy.
Sebei said that despite “sponsored narratives”, the evidence overwhelmingly shows that the cost of renewable energy has fallen well below the cost of fossil fuels.
“In a nutshell, this shift is essential for ensuring energy affordability, environmental sustainability, and energy security and justice for all. Alternative and Just Financing for Eskom: Make the big corporations and the rich pay more.”
Sebei said instead of unjustly burdening those who already suffer from Eskom’s mismanagement and plunder, Nersa should focus on shifting Eskom on a path towards sustainable solutions, fair electricity pricing, and accountability for those who exploited the utility’s financial situation for personal gain and corporate profiteering.
“The conclusion of these hearings marks a moment we must use to shift our resistance from deliberations to action. We need to consistently urge communities and the workers’ movement for mass rolling actions across the country against the inevitable disappointment of Nersa’s decision,” he said.
manyane.manyane@inl.co.za