‘Not a Luxury’: 8.76% Eskom Hike Adds to Household Pain as Experts Warn of Inflation, Energy Poverty

The National Energy Regulator of South Africa (Nersa) has approved significant electricity tariff increases for 2026and the reaction has been swift and critical.

• Eskom direct customers: 8.76% increase from 1 April 2026 to 31 March 2027

• Municipal customers: 9.01% increase from 1 July 2026 to 30 June 2027

The Expert View

Ruse Moleshe, managing director of energy consultancy RUBK, said the increase adds to pressure on households and businesses that have faced sustained electricity price hikes for over a decade.

“Rising power tariffs erode household affordability while increasing input costs for industry. This can dampen investment, production and job creation.”

He warned that the impact could be compounded by broader cost pressures, including expected petroleum price increases linked to the Middle East conflict.

“Together, these developments risk intensifying inflation and reducing income availability, particularly for poorer households who already spend a disproportionate amount of their income on energy.”

But he noted a dilemma: if increases aren’t implemented, Eskom’s sustainability could be at risk.

The Community View

Alice Govender, ActionSA councillor from Phoenix in Durban, was blunt.

“Electricity is not a luxuryit is an essential service that allows people to live with dignity, run businesses and participate in the economy.”

“Any electricity increase above CPI is simply unacceptable. Households and businesses are already under immense financial pressure, and continuous increases in electricity costs place an even heavier burden on communities that are barely coping.”

She added: “The way finances are managed in this country leaves a lot to be desired and has created poverty on a grand scale. The government must start finding the money from its own savings instead of taking it from the pockets of struggling residents.”

Rose Cortes, deputy chair of the eThekwini Ratepayers Protest Movement (ERPM), pointed to the disconnect between tariff hikes and service delivery.

“Tariffs have increased exponentially year on year. 9% for the municipality means we have to wait for their profit margin increase before we know what we are paying. But effectively we are dealing with yet another double-digit increasefor a utility that has failed and fumbled.”

She highlighted the uncertainty around fuel prices since the outbreak of war, warning of “a disconnect between these structures and the affordability crisis they are clearly ignoring.”

The Economic View

Professor Vally Padayachee, energy expert and former Eskom generation executive, said the increases will impact various customer segments and the broader economy.

• Industrial sector: Higher operational costs will likely be passed on to consumers

• Commercial sector: Elevated energy costs will affect profit margins; smaller firms may be disproportionately impacted

• Residential users: Higher prices will strain budgets, particularly for low-income households, potentially exacerbating energy poverty

“Many families may struggle to meet basic needs, leading to cutbacks in other essential areas. This could exacerbate energy poverty, as families may either reduce their electricity usage or turn to alternative, often illegal, energy sources to cope with rising costs.”

The Bottom Line

Nersa’s decision comes at a challenging juncture. The increases are approved. The dates are set. The impact is coming.

For households, it’s another squeeze. For businesses, it’s another cost. For the economy, it’s another headwind.

And for the millions already struggling, it’s a reminder that essential services keep getting more expensivewhile the quality keeps getting worse.

{Source: IOL}

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