Eskom’s NERSA-approved 18,6% electricity price hike is unfair, unaffordable, and unjust

12 January 2023 

‘South Africans are being asked to pay for corruption and mismanagement at Eskom in the most unfair, unaffordable and unjust way. Eskom has alternative ways to raise funds: by reducing their bloated payroll, by cutting suppliers who are over-charging especially for sub-standard coal, and by ending corruption, including recovering state capture loot. In Cape Town, we are working flat out to end our Eskom reliance, diversify energy supply to more affordable power sources, and end load-shedding over time. We remain determined to fight for ordinary Capetonians, a staggering number of whom are struggling under the rising cost of living,’ said Mayor Hill-Lewis.

Mayor Hill-Lewis has repeatedly tabled the City’s opposition to Eskom’s massively above-inflation tariff asks during public hearings held by the National Energy Regulator of South Africa (NERSA), most recently in September 2022. Approximately 70% of the City’s income from the sale of electricity goes toward buying bulk electricity from Eskom, and the remaining 30% ensures a reliable electricity service and healthy grid infrastructure. Given that unaffordable Eskom power is the biggest cost driver, the City is aiming to reduce sole reliance on Eskom as soon as possible.

Cape Town is aiming to end load-shedding over time through various means, including:

- buying power on the open market, with the second phase of its major IPP procurement due to be announced soon

- paying businesses and residents to sell power back to the City

- incentives for voluntary energy savings under a new Power Heroes programme

- municipal generation projects such as Steenbras Hydro power, solar PV, and gas turbines

‘While the City is working to bring down the cost of electricity for Capetonians by procuring electricity from cheaper sources than Eskom, we need Eskom and NERSA to treat South Africans fairly. The price of electricity has risen more than 500% over the past 16 years, far exceeding inflation over that time. As prices were hiked, supply became less reliable. We will continue to oppose Eskom’s unjust price hikes by all available means while accelerating Cape Town’s path away from Eskom reliance,’ said Mayor Hill-Lewis.

Issued by Media Office, City of Cape Town, 12 January 2023