SAFTU Warns New Eskom Tariff Hike Will Plunge Millions Into Poverty

The South African Federation of Trade Unions (SAFTU) has raised alarm over the latest electricity tariff hike, warning it will drive millions of South Africans deeper into poverty.

This follows a settlement between the National Energy Regulator of South Africa (NERSA) and Eskom, granting the power utility an additional R54 billion in revenue. The settlement comes after NERSA admitted to calculation errors in previous revenue determinations.

The amount will be phased in over the next three years through higher tariffs.

SAFTU: “Another Blow for Struggling Consumers”

SAFTU spokesperson Masuku criticised the settlement, saying it will further burden households already battling high living costs.

“These increases will deepen energy poverty as poor households are disconnected or forced to limit usage,” Masuku said.

The union stressed that the increase will disproportionately affect low-income families, forcing many to choose between electricity and other basic needs.

Eskom Confirms Tariff Increase Over Next Two Years

Eskom spokesperson Daphne Mokwena confirmed that consumers will face a tariff increase of around 3% over the next two years as part of the adjustment.

“To address the adjustment, NERSA will implement a tariff increase of approximately 3% over the next two years,” Mokwena explained.

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She added that both Eskom and NERSA are committed to keeping increases in the single digits to minimise the impact on consumers. However, unions remain sceptical about the long-term affordability.

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