The state-owned utility, which is receiving a R250-billion bailout from government, said the increase is needed to prevent the indebted company from returning to the authorities for further financial help. The hike would be for the 12 months to March 2026 and would be followed by increases of 11.8 and 9.1 for the following two years.
"We are striving to be more self-sufficient and not remain a burden on" government finances, Hasha Tlhotlhalemaje, GM for regulation, told reporters at a briefing on Monday.
The increase, which would add to a 600 jump in electricity prices since 2006, has attracted criticism from civil society, municipalities and government. Energy minister Kgosientsho Ramokgopa said earlier this month it would undermine economic growth and deepen poverty and that the government may intervene to keep prices lower.
The utility, which has about R400-billion of debt, has previously been a lightning rod for anger towards government as it imposed regular blackouts due to inadequate maintenance and experienced a series of corruption scandals.
Municipalities, including those governing some of the country's biggest cities, owe the utility R85-billion and that could rise to R200-billion in the 2028 financial year, Cassim said. "This is unsustainable," he said. "Government needs to address this."
