Minister of Electricity and Energy Kgosientsho Ramokgopa has expressed confidence that the National Energy Regulator of South Africa (NERSA) will not approve Eskom’s proposed 36% electricity tariff increase.
He said this was motivated by the stories and presentations from the NERSA public hearings, where pensioners were heard detailing how they struggle to put food on the table with their social grants, and how the increase will challenge their daily lives.
Matter to be concluded by January 2025
Charles Hlabela, NERSA spokesperson, said Eskom’s sixth Multi-Year Price Determination (MYPD6) Revenue Application was still underway. The matter would be concluded by January 2025, he said.
He explained that this was due to extended public hearings and more clarification being needed, among other things.
Ramokgopa said while some residents will be having a black Christmas, the department was also working around the clock to ensure that residents would get free hours of electricity.
He said South Africa had introduced a policy that provided free electricity to poor households. And he believes that government should now increase the units. This considering the high demand for electricity in the modern age.
Pensioners hardest hit
“People are going through an exceptionally difficult period. A lot of us on this podium are privileged, because from here we will be spending time with our families. When we get home, we open the fridge, there’s a choice of what to eat and what to drink. The majority of people watching us today don’t have that privilege.
“A pensioner earns R2,100. And we know that an average cost of electricity is R1,200, and they are diligent payers. They start by paying electricity. So, you have wiped out more than half of their social salaries,” said Ramokgopa.
He also announced that it has been 272 days of uninterrupted power, which is the first in five years. Ramokgopa believes that this leads the way into a more stable economy and communities.
“What load shedding did was to reverse and contract South Africa’s Gross Domestic Product (GDP). Then, when we get into a sustained period of no load shedding, there is greater confidence in the South African economy.
Recovery from load shedding
“The ultimate is to ensure that we grow the state of the South African economy. And for us to do that we need to get an EAF to above the 70%. I did say that we are not there yet. But we are confident that by the next financial year, starting now in April 2025, we should get close.
“And I am confident that the NERSA will not come at 36%, I’m more than confident. I’ve said that to the country, putting my head on the block that it will not come to those levels. But we’ll allow NERSA to make that determination,” said Ramokgopa.
