City Power is the latest organization to reject Eskom’s proposed tariff hike.
The local power utility submitted a comprehensive report to the National Energy Regulator of South Africa (NERSA), strongly objecting to Eskom’s proposed tariff increase for the next three years. The report suggests a more pragmatic approach to tariff increases, as well as a balanced approach between cost reflectivity of tariffs and prudent cost management.
City Power’s Isaac Mangena, said “our submission is in line with the collective decision taken by municipalities in Gauteng to reject the 36.15% tariff increase for the 2025/2026 financial year, as it is excessive and unjustifiably high.”
He said in September 2024, the National Energy Regulator of South Africa (NERSA) published Eskom’s Multi-Year Price Determination (MYPD) 6 revenue application for the period between FY2026 and FY2028.
As part of that application, Eskom is seeking to generate R446 billion for the 2026 financial year,
R495 billion in 2027, and R537 billion in 2028.
If granted, it will amount to 36.15% tariff increase from 1 April 2025 to 31 March 2026, 11.81% from April 2026 to March 2027 and 9.10% in April 2027 to March 2028.
City Power said such a drastic increase in electricity tariffs will exacerbate the already precarious situation faced by our residents, leading to increased poverty, unemployment, and social unrest.