City Power says Eskom's proposed electricity tariff unjustifiably high

JOHANNESBURG - Johannesburg City Power has submitted an objection to the National Energy Regulator of South Africa (NERSA), warning against Eskom’s proposed electricity tariff increases over the next three years. 
 
The utility said the hikes, which could result in a cumulative increase of 66% will plunge municipalities and households into economic turmoil.
 
Eskom seeks to generate over R1.4 trillion in revenue between 2026 and 2028, including a 36.15% tariff increase from April 2025. 
 

READ: Some Soweto residents reject Eskom's proposed electricity hike

City Power described this move as unjustifiably high, adding that it will only exacerbate poverty, unemployment, and social unrest in communities already struggling to cope with this year’s 12.75% increase.

The utility proposed that future tariff hikes be capped at 11% annually, arguing that this strikes a balance between Eskom’s financial needs and the realities facing consumers. 
 
City Power Spokesperson, Isaac Mangena said, "Our submission is in line with a collective decision taken by municipalities in Gauteng to reject the 36.15% tariff increase which is exorbitant.”
 
City Power’s submission also highlights concerns about Eskom’s projected operating costs.
 
It said its recommendations aim to create a more equitable energy landscape while safeguarding South Africans from unsustainable price shocks.