[imagesource:htxt]

Like a python slowly squeezing the life out of its prey, Eskom will reportedly ask the National Energy Regulator of South Africa (Nersa) for an electricity hike of 36.15% and 44% for the next year as it tightens its reptilian stranglehold on South Africans.

According to calculations by BusinessTech, this could mean that a household with an average electricity consumption of 900kWh per month could see their bill increase by R1,600 per month.

Daily Maverick obtained a confidential draft document from Eskom showing hikes in electricity pricing for the fiscal years 2026-2028, which it intends to submit to the National Energy Regulator of South Africa (Nersa). The paper, dated May 2024, also outlines the amount Eskom hopes to collect from tariff increases.

The document is of course the first of many steps that Eskom is required to follow in Nersa’s revenue application process, which, after a lengthy public comment and hearing process, will determine the average price of electricity to consumers.

But let’s be honest, public comment on this increase is likely to be “Go to hell Eskom”, so the load-shedding company will likely keep on squeezing.

Energy analyst Mohamed Madhi told eNCA that he is not surprised by these numbers, given Eskom’s financial situation and what’s been happening in the market. “If you look back, before the 2023/24 increase, they asked for an increase of 32%, and they got an increase of just over 18%,” Madhi said, before adding that consumers need not panic just yet, as it was unlikely that Eskom will get the increase they are asking for.

These increases would pave the way for Eskom to potentially generate revenue of R446 billion, R495 billion, and R537 billion for 2026, 2027, and 2028 respectively.

It is unclear if Eskom has formally filed an application to Nersa that confirms the percentage increases outlined in the draft document, but the utility informed Daily Maverick that it was unable to comment on the situation, which is currently being discussed with stakeholders like the National Treasury and the South African Local Government Association (Salga).

“Eskom must respect the confidential consultation process with Salga and the National Treasury. Once Nersa has published the revenue application according to its processes, Eskom will engage on the matter,” said the power utility.

All we can do is wait while the powers that be decide whether to drown more South Africans in the murky waters of unaffordable living costs. In the meantime, you would be well-advised to look into solar power options. Unfortunately, for the majority of South Africans, this is not an option.

[source:dm&businesstech]