Outgoing ANC government gives South Africans a parting gift of 405% in electricity tariff increases

2 April 2024

The outgoing ANC government has not only destroyed the country’s ability to produce enough electricity to meet demand, but it has also made the ‘sometimes available’ electricity more expensive than it was more than a decade ago.

After the 12,75% tariff increase that came into effect yesterday, the overstretched South African consumer has been forced to absorb 405% in electricity tariff increases over the past 14 years. Since 2010, aggregate standard tariffs have increased by 15% per year compared to an average Consumer Price Inflation of 5,2% over the same period.

While South Africans are forced to choose between keeping the lights on or putting food on the table, there is one group of people who do not endure the same pain – ANC Cabinet Ministers. Secure in comfort from their taxpayer-funded free electricity and water perks, ANC Cabinet Ministers have done nothing to shield consumers from falling into energy poverty due to escalating electricity tariff increases.

Instead, their stubborn insistence on saving the Eskom monopoly has been responsible for the double-digit electricity tariff increases awarded to Eskom by the National Energy Regulator of South Africa (NERSA). Eskom’s old power stations have become expensive to run due to old age and often require extended downtimes for maintenance. Since Eskom cannot absorb these running costs, including the use of diesel to keep the lights on, it is passing on this cost to consumers.

Unless there is a concerted effort to increase the footprint of renewable energy generators across the country and diversify generation sources away from Eskom, South Africans will continue to pay more for electricity as old coal power stations are generating power at over R1/kWh compared to 40c and 50c/kWh for other sources.

The choice in the upcoming elections is a simple one, choose an ANC government which is failing to supply regular electricity while forcing people to pay more for electricity that they do not have or the DA which has a proven track record in finding innovative ways to address the electricity crisis.

DA led governments have seen the value of renewable energy and are taking steps to harness its potential and progressively reduce the cost of electricity over time. The City of Cape Town’s “Cash for Power” will – over time, enable the City to reduce its reliance on Eskom and use the cheap power generated from the local SSEG ecosystem to supply electricity to other residents across the metro.

Issued by Kevin Mileham, DA Shadow Minister of Mineral Resources and Energy, 2 April 2024