The City of Cape Town has announced its intention to oppose Eskom’s proposed 44% electricity price hike at public hearings hosted by the national energy regulator, Nersa, on Monday, November 18.
Alderman Xanthea Limberg, the City’s Mayoral Committee Member for Energy, will lead a delegation presenting oral and written submissions on Eskom’s Multi-Year Price Determination (MYPD) 6, which covers the period from 2025/26 to 2027/28.
“It is unaffordable, unfair and disconnected from the financial reality that households, businesses and our economy faces,” Limberg said regarding the proposed increase.
She emphasised the impact of such a hike on municipalities, noting that approximately 75% of the City’s electricity tariff revenue is used to purchase power from Eskom for distribution.
Limberg warned that this increase, following over a decade of substantial tariff hikes, poses a significant threat to municipal budgets, service delivery, social programs, and the financial well-being of residents and businesses.
Eskom is seeking to raise electricity costs by 44% for municipalities and 36% for direct customers in 2025. The proposed hike follows a reported net loss of R26.9 billion by the power utility in the financial year ending March 2023.
Nersa confirmed receiving Eskom’s six-year revenue application on August 16, which will undergo the required legal processes, including public consultations and stakeholder feedback.
Between 2007 and 2022, Nersa-approved Eskom tariffs increased by approximately 650%, far outpacing the 129% rise in general inflation during the same period.
Meanwhile, the Democratic Alliance (DA) has launched a petition against the proposed hike, garnering over 120,000 signatures.
Limberg highlighted Cape Town’s progress in diversifying its energy sources to provide cleaner, more affordable electricity, but stressed that Eskom’s pricing remains the primary driver of high household energy costs.
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