Electricity minister Kgosientsho Ramokgopa said that Eskom customers have paid almost 180% more for electricity over the last 10 years or are paying almost R2,000 more than they paid a decade ago.
He made this admission as part of his response in a parliamentary Q&A regarding escalating electricity prices in South Africa.
Minister Ramokgopa highlighted that Eskom's electricity generation costs have surged dramatically over the past two decades.
This significant increase is largely attributed to various key factors, including substantial investments in infrastructure, routine maintenance expenditures, escalating fuel costs, and other operational expenses.
He explained that Eskom's tariffs for direct customers increased by 12.74% for the 2024/2025 period.
A massive increase
“While specific per kWh costs vary based on customer category and usage, residential customers consuming 600 kWh per month are now paying approximately R1,491.06 monthly, equating to about R2.49 per kWh,” Ramokgopa said.
The minister said that over the past two decades, Eskom's cost of electricity generation has risen significantly, influenced by factors such as infrastructure investments, maintenance of ageing plants, fuel costs, and operational expenses.
“When adjusted for inflation, these costs have escalated, contributing to higher tariffs for consumers. For instance, in 2014, a typical Eskom customer using around 800 kWh per month paid approximately R1,055. By 2024, the same consumption costs about R2,948.98, reflecting both nominal increases and underlying cost pressures,” he said.
These huge prices could trigger mass unrest
In late December, Ramokgopa warned that the high cost of electricity is a ticking time bomb that could trigger “unrest” and undermine the government.
“People are going through an exceptionally difficult period. Many of us are privileged; we will spend time with our families, open the fridge, and have a choice of what to eat and drink. The majority of the people watching us today do not have that privilege. It’s a real problem, a genuine problem,” he said.
The minister stated that he had been briefed by Eskom officials who attended the public hearings regarding the tariff increases. Input was also made regarding the pressure faced by vulnerable groups, including the poor and the elderly.
In mid-December, the National Energy Regulator of South Africa (Nersa) said year that it expected to make a final decision on the tariff increases by the end of January 2025.
It said this was due to the extended public hearing period. The power utility has applied for a proposed 36% tariff increase for the 2025 financial year, 11.8% in the next and 9.10% for 2027/2028.
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