Housing organisations raise alarm over Eskom’s proposed 36% tariffs hike

Power price increase expected to kick in during April 2025

04 December 2024 - 10:07
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A protest by the DA outside Nersa's public hearings on Eskom’s price hike application. File photo.
A protest by the DA outside Nersa's public hearings on Eskom’s price hike application. File photo.
Image: SANDILE NDLOVU

The National Association of Social Housing Organisations (Nasho) has raised the alarm over Eskom’s proposed 36% price increase, warning of severe financial strain on working-class households.

The tariffs are expected to kick in during April 2025.

Speaking at the National Energy Regulator of South Africa (Nersa) public hearing in Soweto on Tuesday, Nasho representative Senzo Khubeka said the increase could plunge many into deeper debt, leaving families grappling with long-term financial instability.

Increased electricity tariffs drive up overall costs, further eroding purchasing power. Households may incur debt to manage utility costs, creating long-term financial instability,” said Khubeka. 

"This hike will only worsen the financial squeeze on families who are barely making ends meet.”

The warning comes as Eskom’s proposed tariff hike draws criticism from many quarters, with growing concerns about its potential to deepen inequality and derail economic recovery.

Tommy Diedericks from Renew Consulting, a company that specialises in smart metering and renewable utility management, said the impact of the tariffs would lead to job losses.

“Rising electricity prices are causing job losses, particularly in energy-intensive sectors such as steel manufacturing, mining and agriculture. As industries reduce or halt operations, local communities face rising unemployment and economic instability,” he said. 

City Power is expected to make its submissions to oppose the tariff increase.

Build One SA president and MP Mmusi Maimane and his party are expected to picket in Midrand against the proposed tariffs hike.

SowetanLIVE


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