Eskom’s 18,65% tariff increase will have a detrimental effect on Tshwane residents and businesses, and the financial sustainability of the City

The City of Tshwane multiparty coalition government would like to express its disappointment in the decision by the National Energy Regulator of South Africa (Nersa) to grant Eskom an electricity tariff increase of 18,65%.

This 18,65% increase is for the 2023/24 financial year, meaning it will kick in immediately this April. On top of this Nersa has also approved a 12,7% increase for the next financial year, dealing residents with a deadly double blow.

The City has always been opposed to Eskom’s exorbitant price increases simply because our residents cannot afford them, especially now that we have been plunged into darkness with indefinite Stage 6 load-shedding.

This tariff increase will have a detrimental effect on Tshwane residents and businesses, and the financial sustainability of the City, which is already in a precarious state.

For residents, this excessive price hike will lead to a possible escalation in illegal connections as the cost of electricity will become unsustainable for residents with lower incomes, resulting in revenue losses for the City and Eskom.

While for many businesses, electricity is a major production cost, especially within the manufacturing and industrial hubs of Tshwane. An increase of this level will significantly raise the cost of doing business in Tshwane. Both of these combined scenarios will lead to a massive loss of revenue for the City and job losses for our residents.

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