Midvaal fights back against Eskom’s ‘outrageous’ 40% proposed tariff increase
The Midvaal Local Municipality has taken a firm stand against Eskom’s proposed tariff increases, which could see electricity costs skyrocket by over 40% in the coming years. In a letter addressed to Eskom and the National Energy Regulator of South Africa (Nersa), the Municipality has officially objected to the proposed hikes and requested a meeting with the power utility to voice its concerns on behalf of Midvaal residents.
Eskom has reportedly submitted a proposal to Nersa that outlines tariff increases of 43.55% in 2026, 3.36% in 2027, and 11.07% in 2028. Midvaal Mayor Ald. Peter Teixeira has expressed deep dissatisfaction with the proposal, emphasizing that it is unfair to expect South Africans to bear the burden of these increases, especially given the power utility’s history of mismanagement and inefficiencies.
“South Africans cannot be held liable for increases that may arise due to years of mismanagement, patronage, and inefficiencies. It is unfair to ordinary citizens that they are now paying the price for this,” Mayor Teixeira stated.
South Africa already has one of the highest electricity rates in the world, with the average rate for households standing at approximately R3.29 per kilowatt-hour. This is 16.2% higher than the global average of R2.83 across 144 countries. Since 2007, the average household electricity bill has surged by 945.2%, rising from R69.30 per month in 2007 to R724.50 in 2024. The proposed increase by Eskom, coming on top of this year’s 12.72%+ hike, could be catastrophic for many households, particularly those in low-income and middle-class brackets.
Mayor Teixeira warned that the proposed increases would not only strain households but also have a devastating impact on businesses, especially Small, Medium, and Micro Enterprises (SMMEs), which are the backbone of South Africa’s economy. He said: “These businesses are already struggling to stay afloat, and the potential increase in operational costs will further cripple them.”
The Mayor also highlighted the broader economic implications of the tariff hikes, pointing out that South Africa’s economy has been stagnant for years. “Additional electricity price hikes will discourage investors from setting up businesses in the country, negatively impacting any prospects for economic development. When the economy is not growing, it means more people will be without jobs, exacerbating our existing socioeconomic challenges such as poverty, crime, and economic inequality,” he added.
In his appeal, Mayor Teixeira urged Eskom and Nersa to engage with municipalities across the country to find workable solutions that consider the harsh realities faced by millions of South Africans. Teixeira concluded: “We implore Eskom and Nersa to engage with municipalities and find workable solutions while considering the realities that many of our people face.”
The Midvaal Municipality remains committed to protecting the interests of its residents and ensuring that they are not unduly burdened by unsustainable electricity price hikes.
