NEVA SEIDMAN MAKGETLA: Why prices keep rising at Eskom
The legislation does not define efficiency, much less criteria to separate the wheat from the chaff
In April Eskom tariffs rose nearly 13%, about 10 percentage points above inflation. The jump caps an increase of 250% above inflation since 2008. As a result, Eskom’s revenues have climbed from 1.7% of the GDP in 2008 to about 4.3% in 2025. Yet Eskom is now selling 25% or so less electricity than in 2008.
In 2022, according to data from the more recent Income and Expenditure Survey, the average household spent 4.3% of its income on electricity, up from 1.8% in 2006. The burden rose from 2.6% to 5.4% for the poorest 60% of households. In short, over the past 15 years the regulatory framework for Eskom has failed miserably to control its prices. ..
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