They came in tears, with heartfelt pleas, frustration and laughter. They arrived in groups, with sheaths of handwritten petitions and signatures and with questions that often provoked giggles: Is Eskom employing Cuban engineers? How many corrupt cadres are in Eskom?
After months of presentations, South Africans won the fight.
Eskom submitted three separate revenue applications (for generation, the National Transmission Company of South Africa [NTCSA] and distribution), National Energy Regulator (Nersa) chairperson Thembani Bukula, said.
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They came in tears, with heartfelt pleas, frustration and laughter. They arrived in groups, with sheaths of handwritten petitions and signatures and with questions that often provoked giggles: Is Eskom employing Cuban engineers? How many corrupt cadres are in Eskom?
After months of presentations, South Africans won the fight.
Eskom submitted three separate revenue applications (for generation, the National Transmission Company of South Africa [NTCSA] and distribution), National Energy Regulator (Nersa) chairperson Thembani Bukula, said.
Durban residents protest against Eskom’s proposed tariff hike outside the Nersa public hearing on 21 November 2024. (Photo: Gallo Images / Eliah July)
Eskom requested R445,563-million, R495,355-million and R536,778-million for the 2025/26, 2026/27 and 2027/28 financial years, respectively. Based on Eskom’s application, the proposed standard tariff increases were projected at 36.15%, 11.81% and 9.1% for the three years.
After publication of the Eskom application, Bukula said, they had received more than 1,200 written responses from a diverse range of stakeholders, including civil society groups, community organisations, non-government organisations, business associations, political organisations, environmental activists, local government, trade unions, intensive energy users, members of the public and other stakeholders.
In heartbreaking evidence, commissioners were told how women had to chop wood in Kwazakhele, Nelson Mandela Bay as they couldn’t afford to cook with electricity.
“Throughout this process, we received valuable insights and feedback on several key themes, including affordability, Eskom’s performance, the impact of negotiated price agreements, municipal debt and the need for better consultation by Eskom and municipalities,” Bukula said.
The approved tariffs are:
- 2025/26 financial year - revenues of R385-million, which translates into a 12.74% increase;
- 2026/27 financial year - revenues of R410-million, a 5.36% increase; and
- 2027/28 financial year - revenues of R437-million, a 6.19% increase.
“This decision is not taken lightly,” Bukula continued. “The energy regulator recognises the challenges consumers face and the importance of ensuring that electricity remains affordable while securing Eskom’s financial sustainability.
“Our challenge has been and remains to regulate the energy industry in a manner that balances the interests of energy producers on the one hand and those of consumers on the other. This is never an easy task, for inevitably, it is influenced by the greater economic environment, both locally and internationally, and as directed by the policy environment of the government.”
Nelson Mandela Bay Business Chamber CEO Denise van Huyssteen, representing the bulk of the automotive and manufacturing industry in the metro, said they were relieved that the increase was 12.7% and not the requested 36%.
“However, this is almost double the inflation rate and will drive inflation in other areas such as food and fuel, and will increase the overall cost of operating businesses in the country,” Van Huysteen said.
“While there has been good progress in stabilising electricity supply, with no load shedding taking place over a 10-month period, Eskom still has significant sustainability challenges which it needs to address.
“Key among these is that municipalities owe the power utility over R90-billion, and electricity supply at a municipal level has been inefficient due to vandalism, illegal tampering, incorrect billing and various other issues. This in turn has resulted in a lack of investment, at a municipal level, in the maintenance and upgrading of electricity infrastructure,” she said.
According to an answer provided to Parliament in December, defaulting municipalities owed Eskom R107-billion at that time.
The chamber had sent David Mertens to fight their cause at Nersa. He began his representation by saying: “I am here to fight for jobs.” Mertens is widely regarded as an expert in electricity tariffs and had managed previously to bring down municipal electricity increases, saving R600-million.
Labour unions supported businesses in their fight against the 36% tariff hike.
In Durban, such a large crowd arrived at the Nersa hearings at the Royal Hotel that the venue had to be switched.
Local groups, such as the eThekwini Ratepayers Protest Movement, ward councillors and environmental groups turned up. Those who could not initially be accommodated outside the venue, including shack dweller organisation Abahlali BaseMjondolo and the Durban South Service Centre for the elderly, protested outside.
In Cape Town, people also arrived in droves to fight against the increase.
Read more: ‘Bleeding us dry’ — Capetonians slam ‘unacceptable’ Eskom tariff hike as public hearings start
Sandra Damonse, a representative of faith-based organisations for Ward 9 in Bellville South, said the increase would make a bad situation worse.
“We are from a poor community and we can’t keep up with this big (electricity price) hike. I am fighting here, I haven’t got great-grandchildren yet but I’m fighting for my great-great-great-grandchildren so that they can have a better life.”
In most provinces, apprehensive women arrived in groups.
Joan Asia from Rocklands, Gauteng, said electricity was an essential need. “When I get my pension I have to choose between buying food and electricity. I have my two grandchildren living with me. They need the electricity for their assignments and schoolwork. I sometimes have to choose if I can buy my medication. We opted to use gas. We have switched off the geyser and cook water on the stove to bath. Every increase means less food and more stress,” she said.
Pensioners came to testify, but also to read representations from their friends who couldn’t make it to the hearings.
When speakers’ passion became too much to be captured in English, in the Free State, farmers switched to Afrikaans. Hannes de Wet from Agri-Northern Cape told the commissioners: “I am from the Northern Cape, we only speak English in self-defence.”
Recounting evidence of families that would have had to choose between food and electricity if the increase had been approved and also how businesses feared that a 36% price increase would push them towards retrenching people, after months of hearings and plenty of translation, Bukula had a message for South Africans: “We heard you,” he said. DM