The City of Cape Town will oppose Eskom’s proposed 44% price hike at public hearings set to be held by national energy regulator Nersa on Monday, November 18.
A delegation, led by the City’s Mayoral Committee Member for Energy, Alderman Xanthea Limberg, will be making oral and written submissions on the national power utility’s Multi-Year Price Determination (MYPD) 6 for the period from 2025/26 to 2027/28.
“It is unaffordable, unfair and disconnected from the financial reality that households, businesses and our economy faces,” Alderman said.
“The ripple effect on municipal pricing is profound as approximately 75% of City electricity tariff income is used to buy power from Eskom for distribution.”
Alderman said this increase, which comes on the back of more than a decade of substantial hikes, was a major threat for the municipality, service delivery, social assistance and residents and businesses in general.
Eskom seeks to increase electricity costs by 44% for municipalities and 36% for direct customers in 2025. This after the power utility incurred a net loss of R26.9 billion in the financial year ending March 2023.
Nersa confirmed it had received Eskom’s six-year revenue application on August 16, and that it would be processed following all legally required procedures, including stakeholder commentary and public consultation.
It is estimated that in the 15 years between 2007 and 2022, Nersa-approved Eskom tariffs increased by around 650%, while general inflation went up by 129%.
A Democratic Alliance (DA) petition against the proposed increase for 2025 has reportedly amassed over 120,000 signatures.
“Cape Town has South Africa’s most advanced plans to diversify energy sources and provide cleaner and more affordable power, however Eskom and its pricing remains the single biggest factor in household costs currently,” Alderman concluded.
IOL