The Cry of the Xcluded strongly opposes Eskom’s proposed exorbitant electricity tariff increase. This is not merely an issue of numbers and percentages; it’s a matter of survival for millions of South Africans.

In the coming financial year, Eskom plans to increase tariffs for direct customers by approximately 36%. And if that isn’t enough, they intend to raise these tariffs by another 12% in the 2027 financial year, followed by an additional 9% in 2028. These percentages may sound technical, but in real terms, they spell devastation. 

Underlying Eskom’s request for a tariff increase is a structural problem arising from the adoption of the full cost recovery model and the user-pays principle. The implication is that Eskom is a public utility that must operate on the same basis as any other private company. It has been corporatised. 

The Electricity Regulation Act doubled down on the principle that electricity tariffs must be set at a level that is cost-reflective and inclusive of a reasonable rate of return, high enough to ensure continued private investment and funding. 

The consequence of this is that the utility is dependent on selling electricity to raise revenue in order to recover its costs. South Africa is the most unequal country in the world. Millions of South Africans are without a stable income. Many survive through informal or unstable jobs, where a steady monthly salary is a luxury, not a guarantee. Most people are already unable to afford rising tariffs. 

This problem is exacerbated by the increased privatisation of electricity in the country and the drive for a competitive energy market. The private sector is interested in maximising profits, which means even high tariffs at the expense of ensuring that people’s essential needs are met. 

These hikes will only serve to continue to exclude the majority of South Africans from being provided with decent services. It will also increase energy poverty and deepen inequalities in the country. Already, families are forced to choose between electricity and food. What’s more, these tariff increases will not solve Eskom’s deeper issues. They are a temporary fix, a bandage on a wound that requires surgery. Without reversing the corporatisation of Eskom and ending the full cost recovery model, along with ensuring greater transparency and accountability, we can expect that tariffs will continue to rise. 

The roll-out of Free Basic Electricity (FBE) has had limited success in reducing the impact of rising tariffs. Millions are excluded from receiving FBE by municipalities that are reliant on selling services and, therefore, are disincentivised from registering indigent households that are eligible for free basic services.

In addition to millions being excluded, the amount of 50kwh of electricity per household per month is completely inadequate to meet people’s needs to live a decent life. It is estimated that households require at least 350 kWh per household per month. 

It is unjust to expect South Africans, particularly those who are unemployed or live in poverty, to pay for a problem that will persist regardless of how much they are asked to sacrifice. We are deeply concerned for the well-being of the majority of people in the country, especially the millions of energy-poor South Africans who do not have safe, affordable and reliable access to services, including electricity. 

We call on the government to: 

• Fix Eskom and end privatisation of electricity and other essential services 
• Impose stricter oversight on Eskom’s operations and ensure transparency in their financial dealings 
• Provide universal free basic electricity of 350 kWh per household per month
• Invest in renewable energy infrastructure and develop a localised renewable energy manufacturing sector; South Africa has an abundance of sunlight and wind. 

We call on every South African to stand with us. This is our fight. We must demand that Eskom and the government put people before profit, prioritise sustainable energy, and find ways to address Eskom’s challenges without punishing those who are already suffering.

For more information contact: 

• Motsi Khokhoma, Cry of the Xcluded Coordinator: 073 490 7623 
• Matthews Hlabane, Cry of the Xcluded Coordinator: 082 707 9860