Gauteng councils collectively reject Eskom’s proposed tariff increases

Gauteng municipalities have collectively rejected Eskom’s proposed 36.15% tariff increase for the 2025/26 financial year, saying it is excessive and unjustifiably high.

The municipalities include the City of Tshwane, the City of Johannesburg, the City of Ekurhuleni and Sedibeng district municipality.

According to the municipalities, the drastic rise in electricity tariffs will worsen the already precarious situation faced by residents, leading to increased poverty, unemployment and social unrest. 

“The recent implementation of a 12.75% tariff increase has already placed immense financial strain on our residents, pushing many to the brink of economic hardship. The potential for a further increase of this magnitude is not only unsustainable but also morally unacceptable,” said City Power spokesperson Isaac Mangena on behalf of the municipalities.

In September, the National Energy Regulator of SA (Nersa) released Eskom’s Multiyear Price Determination (MYPD6) revenue application for financial year 2026 to financial year 2028. As part of this application, Eskom aims to generate R446bn for the 2026 financial year, R495bn in 2027 and R537bn in 2028.

According to the municipalities, that application, if granted, would translate to a 36.15% tariff increase from April 1 2025 to March 31 2026; 11.81% from April 1 2026 to March 31 2027; and 9.10% from April 1 2027 to March 31 2028. 

The municipalities said the proposed increase, which could reach an alarming cumulative 66% over the application period, would pose a significant threat to the economic stability and social fabric of the communities they serve. 

“We are aware of the challenges Eskom faces. However, the burden of these challenges should not be placed on the shoulders of our residents,” Mangena said.

The municipalities fear the implications of a 36.15% increase for the next financial year are dire and could lead to widespread discontent and unrest, he said.

“It’s important to also note that a lot of businesses have collapsed over the past few years as a result of load-shedding, leading to huge job losses in our respective municipalities.

“Eskom has not taken accountability for the effect of load-shedding on our municipalities’ economic wellbeing and yet expect the same residents who are still struggling to recover from the effects of power failures to pay for these exorbitant increases.”

Mangena said the municipalities, as key stakeholders, would collectively express their rejection of the proposals through written submissions. Municipalities have also urged residents and community organisations to join the call to push back against the proposed tariff increases.

“We call upon Nersa to consider the broader implications of this proposed increase and to prioritise the welfare of the citizens we serve. We must work collaboratively to find sustainable solutions that do not jeopardise the livelihoods of our residents. We urge all stakeholders to make their input in writing, on the consultation paper on Eskom’s MYPD6 revenue application.”

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