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AfriForum ready to investigate rationality of Eskom tariff increase

Soundbite: Deidré Steffens (English)
Soundbite: Deidré Steffens (Afrikaans)

AfriForum is ready to scrutinise the National Energy Regulator of South Africa’s (NERSA) reasons for its decision to approve an additional tariff increase of more than R54 billion to Eskom to determine its rationality and substance. If NERSA doesn’t publish the reasons for their decision timeously, AfriForum will submit a formal request for it.

This follows NERSA’s announcement yesterday (8 February) that the regulator will allow a further R54 billion to be allocated to Eskom. The following Eskom tariff increases were announced:

Financial yearOriginal approved tariff increaseAdditional tariff increaseAdditional burden on consumers
2026/20275,36%8,76%+3,40%
2027/20286,19%8,83%+2,64%

In its media communication on the increase, NERSA argues that the increase is “fair” to Eskom, but at the same time “mitigates” the “tariff shock” on consumers. However, AfriForum maintains that this is not the case and emphasises that consumers must once again pay the price for Eskom’s years of structural and management failures.

Morné Mostert, AfriForum’s Manager for Local Government Affairs, emphasises that a mere announcement regarding the increase is not enough. “Complete evidence regarding the decision is now essential. The energy regulator will have to be able to demonstrate that the decision was thoroughly thought through and that the methodology was correctly and consistently applied.”

“Electricity tariffs affect everyone in the country. It is therefore not acceptable that billions of rand are simply redirected to Eskom without NERSA being able to fully and convincingly explain why this is necessary, legitimate and fair,” explains Deidré Steffens, AfriForum’s Advisor for Local Government Affairs.

Once the full details of the decision are available, AfriForum will carefully study NERSA’s reasons for the Eskom tariff increases. The organisation will then discuss the matter with its legal team to determine what further steps are needed to protect consumers’ rights.

AfriForum remains committed to acting as a watchdog and ensuring that consumers do not continue to pay for regulatory errors, poor governance and an electricity monopoly that is rarely held accountable.

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