ATM says Eskom’s electricity tariff hike an assault on citizens

The African Transformation Movement (ATM) says the impending Eskom electricity price hike is a direct assault on the economic stability and welfare of the South African citizens.

“Such a substantial hike in electricity prices will undoubtedly burden already struggling households and businesses, exacerbating the financial strain faced by many South Africans,” the ATM said in a statement.

Despite the excessive load shedding badly affecting households and businesses throughout the country, Eskom is set to hike its electricity tariffs on 1 April 2024.

The hike stems from last year when the National Energy Regulator of South Africa (Nersa) approved a massive tariff increase split over two years.

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Nersa approved a 12.74% electricity tariff hike for the 2024/25 financial year. Its approval came at the same time it approved last year’s electricity price hike of 18.65% — significantly less than the 32.02% increase Eskom had asked for.

Combined, the two price hikes represent a 33.8% electricity price increase over two years.

The ATM said it recognizes the importance of ensuring the financial viability of Eskom and maintaining the stability of the national grid. “However, we firmly believe that any solution must be equitable and considerate of the socio-economic realities facing ordinary citizens.”

Eskom was looking to recover R351 billion through the tariff hike in 2023/2024 and had planned to recover R381 billion the following financial year.

The ATM called on Eskom to reconsider its decision and explore alternative solutions that prioritize affordability and social responsibility.

“We urge Eskom to engage in meaningful dialogue with stakeholders, including consumer advocacy groups and civil society organizations, to find a more equitable and sustainable way forward,” the party emphasized.

“Furthermore, we call on the relevant authorities, including the National Energy Regulator of South Africa (NERSA) and the Department of Mineral Resources and Energy, to intervene and ensure that any adjustments to electricity tariffs are fair, transparent, and in the best interests of all South Africans,” it added.