The National Energy Regulator of South Africa (Nersa) has approved electricity tariff increases of 8.76% for Eskom’s direct customers, effective from 1 April 2026 until 31 March 2027, and 9.01% for municipal users, effective from 1 July 2026 until 30 June 2027. These hikes come amid warnings from civil society that the rises are exacerbating an already severe affordability crisis for ordinary households.
Tebogo Mashilompane, national leader of the Forum for South Africa (FOSA), described the increases as unsustainable, stating that South Africans are already struggling to afford electricity. He emphasized that many working-class families, who often support extended relatives, and the unemployed are particularly hard-hit. “People are unable to afford [electricity] and then now there’s another increase… this cannot be,” Mashilompane said, highlighting that even employed individuals face mounting burdens.
Mashilompane pointed out that current costs—such as R500 lasting only a week or week and a half—make electricity prohibitively expensive. He argued that the hikes far exceed inflation rates, with wage increases often around 4% while electricity rises by nearly 9%. This mismatch, combined with rising food prices influenced by global factors like oil costs and conflicts, leaves households with little room to cope.
A major concern raised by Mashilompane is the risk of increased illegal electricity connections and tampering with meters. He explained that when legal electricity becomes unaffordable, people opt for illegal alternatives, such as paying small bribes to tamper with boxes for minimal monthly costs. This not only undermines Eskom’s revenue but also poses safety dangers, with makeshift connections running under roads and creating hazards. Mashilompane noted that even some Eskom workers reportedly assist in such tampering for payment, leading to greater losses for the utility than if prices were kept affordable.
He stressed that high prices discourage payment rather than encourage it, predicting that Eskom and municipalities will collect far less than targeted. Examples include non-payment trends in regions like the North West province, where over 50 municipalities are struggling to function due to poor revenue collection—even from wealthier residents.
To address the issue, Mashilompane called for government intervention, urging that future tariffs align with inflation and that subsidies be introduced for the working class and poor. “If they fail to subsidize electricity it means they are not going to collect even a quarter of what they want,” he said. He also advocated for diversified energy sources, reluctantly supporting greater private sector involvement despite preferring government control, as the current system is seen as inefficient and monopolistic.
Mashilompane highlighted the potential for alternative solutions like solar systems integrated with grid electricity, but noted regulatory barriers make adoption difficult, including fees for using solar. He suggested municipalities explore independent supplies, though education and political resistance—particularly in areas managed by the ruling party—pose challenges.
Looking ahead, Mashilompane warned of severe long-term consequences, including economic collapse if consumers cannot participate in the economy. “Once the consumers are unable to participate… it basically means that the economy will not grow.” He predicted Eskom could end up providing much electricity for free in informal settlements through unchecked illegal connections, while paying customers subsidize the system.
FOSA is consulting lawyers and electricity experts to explore options, including potential legal recourse, to push for price reductions and subsidies. Mashilompane affirmed the organization’s commitment: “We are not going to let this lie. We want this price to go down and… we are going to force the government if they need to be forced… for the sake of the citizens.”