DA to protest NERSA’s electricity tariff hike ahead of public hearings on Eskom

DA to protest NERSA’s electricity tariff hike ahead of public hearings on Eskom! Cape Town Mayor Geordin Hill-Lewis is spearheading a Democratic Alliance (DA) protest against Eskom‘s application for a significant electricity tariff hike for 2025.

The demonstration is set to coincide with public hearings by the National Energy Regulator of South Africa (NERSA) on Monday.

Eskom’s Controversial Tariff Proposal

Eskom, the state-owned power utility, has proposed a 36.1% increase in electricity tariffs for the 2025/26 financial year. This comes on the heels of a 4% increase already granted by NERSA to recover R8 billion in losses from the 2021/22 fiscal year.

In its submission, Eskom argues that the current average price of electricity does not cover its operating costs or the cost of capital. Furthermore, Eskom is seeking an additional 11.8% increase for the 2026/27 financial year.

These proposed increases have sparked widespread criticism and concern, given the economic challenges South Africans already face.

DA Mobilizes Against Tariff Increases

The Democratic Alliance has taken a firm stand against Eskom’s proposed hikes. Ahead of the public hearings, the party has gathered over 200,000 signatures on a petition opposing the increases.

Kevin Mileham, the DA’s spokesperson on Energy and Electricity, emphasized the frustrations of South Africans who are grappling with the high cost of living, unreliable power supply, and the effects of load shedding.

“This petition signals the frustration of those grappling daily with the economic and social impacts of sky-high electricity, the cost of living crisis, a recent history of devastating load shedding, and unreliable power supply in hundreds of municipalities,” said Mileham.

The protest will take place outside the Cape Town hotel hosting the first of several hearings across the country.

Civil Society Joins the Fight

The public hearings are expected to draw submissions from a diverse group of stakeholders, including civil society organizations and local government representatives.

Among those scheduled to present their views are:

• The Green Connection, an environmental advocacy group focused on sustainable energy solutions.
• The Southern African Faith Communities’ Environment Institute (SAFCEI), which represents faith-based perspectives on environmental and social justice issues.
• The South African Local Government Association (SALGA), which advocates for the interests of municipalities.
• The City of Cape Town and Swartland Municipality, representing local government concerns.

These groups are likely to highlight the broader impacts of tariff hikes on ordinary citizens, municipal operations, and the environment.

Economic Pressures and Load Shedding Woes

South Africa’s electricity crisis is a critical backdrop to Eskom’s application. The country has faced persistent load shedding, disrupting businesses and daily life while undermining economic growth.

Many South Africans are already feeling the pinch of high electricity costs amid a broader cost-of-living crisis. The proposed tariff hikes have been criticized as exacerbating these challenges, with citizens and businesses questioning Eskom’s efficiency and financial management.

City of Cape Town’s Energy Initiatives

Under Mayor Geordin Hill-Lewis, Cape Town has positioned itself as a leader in pursuing energy independence. The city is implementing plans to reduce reliance on Eskom, including investments in renewable energy and independent power producers.

Hill-Lewis has previously stated that municipalities should have greater control over their energy supplies to ensure reliability and affordability for residents.

The Road Ahead

Monday’s protest and public hearings mark the beginning of a critical phase in the debate over Eskom’s tariffs. While Eskom insists that the increases are necessary for financial sustainability, the DA and civil society groups argue that they will deepen economic hardships for millions of South Africans.

The outcome of these hearings will likely shape the trajectory of South Africa’s energy landscape, with implications for affordability, sustainability, and governance.

As the hearings unfold, the pressure is on NERSA to weigh public opposition against Eskom’s financial imperatives, balancing the needs of consumers with the utility’s ongoing challenges.