Eskom CEO: Worst of Electricity Price Hikes Behind Us

South Africans may finally be able to breathe a little easier when it comes to their electricity bills. Eskom CEO Dan Marokane says the worst of the steep price hikes is over, with the utility committing to keep future increases below 10%.

The assurance comes after years of double-digit tariff hikes that have strained households, rattled businesses, and fuelled inflation across the country. Speaking to Newzroom Afrika, Marokane admitted Eskom has no choice but to “live within” single-digit increases if South Africa is to rebuild its fragile economy.

Holding Tariffs To Single-Digit Increases

Marokane pledged that Eskom will “ask nothing more than a single-digit increase going forward.” To do this, the utility is tightening its belt by driving down costs, renegotiating with suppliers, and scrutinising procurement. With consumer inflation sitting at just 3.5% in July, the promise marks a major shift in tone from years of harsh price shocks.

Still, challenges remain. Eskom will need to claw back R54 billion after a regulatory blunder by energy watchdog Nersa underestimated its revenue requirement. Instead of dumping the cost on consumers in one blow, the utility says it will phase in the recovery to soften the impact.

Illegal Connections Costing Billions

Even with tariff relief on the horizon, Eskom is haemorrhaging money through electricity theft. Illegal connections and other non-technical losses cost the power utility between R15 billion and R20 billion every year.

These connections not only cut into Eskom’s revenue but also damage infrastructure by overloading transformers, leading to “load reduction” in certain areas. While load shedding has eased, many townships still face these targeted cuts because of overloaded grids.

Free Basic Electricity Policy Under Fire

At the heart of the problem, Marokane said, is South Africa’s outdated free basic electricity policy. Out of 10 million indigent households eligible for free power, only two million are currently receiving it. To make matters worse, the free allocation was set 15 years ago and no longer reflects modern energy needs.

“We argue that the number needs to be increased to ensure indigent people are not forced into illegal connections,” Marokane explained. Eskom is lobbying government for reforms that would protect vulnerable households while curbing theft-driven losses.

Mining Discounts And Public Debate

Marokane also touched on the controversial issue of mining companies paying lower tariffs than ordinary households. These discounted deals, designed to keep mines globally competitive and preserve jobs, have sparked public anger.

The CEO defended the practice but acknowledged that it will face scrutiny during government’s electricity pricing policy review, expected to be completed by June 2026. The review aims to balance affordability for families, competitiveness for industry, and Eskom’s long-term sustainability.

The Bigger Picture

Eskom’s pledge comes at a time when South Africa is desperate for economic stability. Electricity costs shape everything from food prices to job security, and years of tariff hikes have deepened inequality. For many families, relief can’t come soon enough.

But Marokane’s remarks also signal a turning point: a recognition that South Africa’s energy future depends not just on Eskom’s survival, but on rebuilding public trust, protecting households, and keeping the lights on without breaking the bank.

Source: Tech Central 

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