Gauteng Municipalities have combined efforts to reject Eskom’s Proposed Tariff increase for the 2025/2026 Financial Year.
They are also urging all stakeholders to make their input in writing, on the Consultation Paper on Eskom’s MYPD6 revenue application, of a proposed 36.15 percent tariff hike for the 2025/2026 financial year.
Municipalities opposing the tariff are City of Johannesburg, Metropolitan (MOE City Power), City of Ekurhuleni Metropolitan, City of Tshwane Metropolitan, Sedibeng District, Emfuleni Local, Lesedi Local, Midvaal Local, West Rand District
Merafong City Local, Mogale City Local and Rand West City Local.
They said firstly, the proposed tariff is excessive and unjustifiably high.
“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.
That application, if granted, would translate 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 according to the Municipalities.
The Municipalities said this would equate to an alarming 66%, cumulative over the application period.
This would pose a significant threat to the economic stability and social fabric of
communities.
They also said Eskom has not taken accountability of the impact of load shedding on municipalities’ economic wellbeing, and yet expect the same residents who are still struggling to recover from the effects of power failures, to pay for these exorbitant increases.