Collective Rejection of Eskom’s Proposed Tariff Increase for the 2025/2026 Financial Year
Date: 02 December 2024
Gauteng Municipalities collectively reject Eskom’s proposed 36.15 percent tariff increase for
the 2025/2026 financial year as it is excessive and unjustifiably high. In September 2024, the
National Energy Regulator of South Africa (NERSA) published Eskom’s Multi-Year Price
Determination (MYPD) 6 revenue application for the period between FY2026 and FY2028. As
part of that application, Eskom is seeking to generate R446 billion for the 2026 financial year,
R495 billion in 2027, and R537 billion in 2028.
That application, if granted, would translate to 36.15% tariff increase from 1 April 2025 to 31
March 2026, 11.81% from April 2026 to March 2027 and 9.10% in April 2027 to March 2028.
The proposed increase, which could reach an alarming 66% cumulative over the application
period, will most certainly pose a significant threat to the economic stability and social fabric of
the communities we serve. The recent implementation of a 12.75% tariff increase has already
placed immense financial strain on our residents, pushing many to the brink of economic
hardship. The potential for a further increase of this magnitude is not only unsustainable but
also morally unacceptable. Such a drastic rise in electricity tariffs will exacerbate the already
precarious situation faced by our residents, leading to increased poverty, unemployment, and
social unrest.
We are acutely aware of the challenges that Eskom faces; however, the burden of these
challenges should not be placed on the shoulders of our residents. The implications of a 36.15
percent increase for the following financial year are dire and could lead to widespread
discontent and unrest, reminiscent of the tensions we experienced earlier this year. It’s
important to also note that a lot of businesses have collapsed over the past few years, as a
result of the impact of loadshedding, leading to massive job losses in our respective
municipalities. Eskom has not taken accountability of the impact of load shedding on our
municipalities’ economic wellbeing, and yet expect the same residents who are still struggling
to recover from the effects of power failures, to pay for these exorbitant increases.
As key stakeholders, we will collectively express our rejection of these proposals through
written submissions. We also urge residents and community organisations to join the call to
push back against these proposed tariff increases. We call upon the National Energy
Regulator of South Africa (NERSA) to consider the broader implications of this proposed
increase and to prioritize the welfare of the citizens we serve. It is imperative that we work
collaboratively to find sustainable solutions that do not jeopardize the livelihoods of our
residents.
We urge all stakeholders to make their input in writing, on the Consultation Paper on Eskom’s
MYPD6 revenue application. The programme for public participation is as follows:
This is a joint statement of the following municipalities:
City of Johannesburg Metropolitan (MOE City Power)
City of Ekurhuleni Metropolitan
City of Tshwane Metropolitan
Sedibeng District
Emfuleni Local
Lesedi Local
Midvaal Local
West Rand District
Merafong City Local
Mogale City Local
Rand West City Local.
Written comments can be forwarded to mypd@nersa.org.za ; hand-delivered to Kulawula
House, 526 Madiba Street, Arcadia, Pretoria, or posted to PO Box 40343, Arcadia, 0083,
Pretoria, South Africa.