South Africa’s power utility, Eskom, is seeking a 36% electricity tariff increase, sparking widespread opposition during nationwide public hearings hosted by energy regulator Nersa. The utility also proposed smaller hikes of 12% and 9% for subsequent years, with Nersa’s decision expected on December 20.
Eskom argues the increases are essential to address its financial woes and maintain uninterrupted power supply. Despite financial challenges and frequent blackouts in recent years, 2024 marked a turnaround, with South Africa achieving over 200 days without outages, boosting economic optimism.
However, the utility faces mounting debts, with municipalities owing Eskom 90 billion rand ($5 billion). Johannesburg alone owes 4.9 billion rand, prompting Eskom to threaten power cuts unless payment is made by December. While the city has committed to settling part of the debt, disputes over billing and meter verification persist.
Critics argue that outages would harm residents and businesses already grappling with economic difficulties, including a 33% unemployment rate. Eskom’s financial strain is further compounded by competition from independent power producers and users opting off-grid solutions.
As the debate continues, Eskom faces a critical balancing act between financial recovery and its responsibility to ensure energy security.
