Electricity Tariffs Leave South Africans Choosing Between Food or Power, Says Minister

Minister Ramokgopa says runaway electricity costs are fuelling energy poverty and debt, threatening Eskom’s survival

As electricity tariffs surge across South Africa, families are being forced to choose between eating and keeping the lights on, Electricity Minister Kgosientsho Ramokgopa warned this week.

Between April and July, electricity prices have climbed by an average of 12.74%, placing even more pressure on cash-strapped households already reeling from high food prices and rising unemployment.

“This is the painful reality of energy poverty,” said Ramokgopa. “It’s not just an issue of affordability, it’s about survival.”

Municipal debt explodes as Eskom struggles to stay afloat

The minister revealed that municipal debt to Eskom is growing at a rate of R3 billion per month, recently breaching the R100 billion mark. This mounting crisis poses a serious threat to Eskom’s stability and by extension, the entire power supply network.

Most of this debt stems from non-payment by residents, who simply can’t keep up with inflated bills. Municipalities rely heavily on electricity sales to fund services, and the revenue shortfall is compounding financial distress across the country.

“We are in a position where municipalities, particularly smaller ones, are falling off a fiscal cliff,” Ramokgopa cautioned.

Johannesburg avoids blackout showdown with Eskom

In Johannesburg, a legal showdown between City Power and Eskom was narrowly averted thanks to the minister’s intervention. Eskom had threatened to cut off four substations due to R4.9 billion in unpaid bills, but City Power disputed R3.4 billion of that amount, alleging incorrect billing.

On 24 June, Ramokgopa announced a breakthrough: the two parties agreed to a R3.2-billion settlement to be paid over four years, plus a tariff relief of R830 million.

The agreement was based on data collected by the South African National Energy Development Institute (Sanedi), which spent three months crunching numbers to help both sides find common ground.

“This is a model we can use to resolve other municipal disputes with Eskom,” Ramokgopa said.

City Power finances in freefall despite rising revenue

Even Johannesburg, South Africa’s economic powerhouse, is buckling under pressure. Although City Power increased its revenue by 17.4% in the year to June, its expenses surged by 23%, leaving the utility with a net loss of R602 million and a bank overdraft of R15.34 billion.

Meanwhile, the city experiences over 30,000 power cuts per quarter, driven by aging infrastructure, illegal connections, and inability to collect payments from residents.

A R44-billion upgrade bill looms large, but there’s little money available to fund the overhaul.

The bigger picture: national power crisis continues

For most South Africans, the numbers aren’t just figures, they translate to darkness, cold dinners, and daily trade-offs.

“Tariffs are becoming unsustainable,” said Ramokgopa. “People are having to make impossible choices.”

As government tries to stabilise Eskom and municipal networks, the real test lies in restoring dignity to millions living on the edge of power insecurity.

“We can’t have state departments taking each other to court while the people suffer in silence,” he said.

Is your household struggling to keep up with electricity costs? What do you think of the tariff hikes? Share your thoughts in the comments or email our newsroom.

{Source: Daily Maverick}

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