The municipalities of Cape Town and Tshwane have issued strong appeals to the National Energy Regulator of South Africa Nersa, urging it to reject Eskoms proposed electricity tariff hike. They warn that the increase could lead to severe economic hardship for households and businesses within their jurisdictions.
On behalf of Cape Town households and businesses, especially small businesses, we are calling for the rejection of a 44 electricity tariff hike. The economic impact, especially on lower income families, will be immense with the cost of loving already so high, says Cape Town Mayor Geordin Hill-Lewis in a letter to NERSA.
We call on NERSA to marshal the independent expertise needed to assess Eskoms cost structures and margins. We believe that Eskom can improve their efficiency, reduce costs, and develop new revenue streams rather than passing this huge increase on to consumers, he says.
If this super inflationary increase, or anything close to it, is granted, it will put our consumers, households, and working men and women under incredible pressure, and we will fight it, the Mayor of Tshwane, Cilliers Brink said in a video shared on social media platform X.
On Monday August 26, Nersa announced it had received Eskoms Sixth Multi-Year Price Determination MYPD6 revenue application for the 2025/26, 2026/27, and 2027/28 financial years. Although the proposed tariff increase has not been specified, Nersa confirmed that the application would be processed in accordance with the National Energy Regulator Act, 2004 Act No. 40 of 2004 if deemed compliant.
The application is currently under review for regulatory compliance. Once assessed, it will be published for stakeholder comments and public consultation, said Charles Hlabela , Head of Department Communication and Stakeholder Management. Stakeholders are encouraged to submit their views and provide relevant evidence to the Energy Regulator during this process.
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