Low-income households may benefit from some relief from electricity price hikes. South Africa’s National Energy Regulator (Nersa) has published its retail adjustment tariff for 2023/24. It includes a 10% increase for low-income households instead of the originally approved 18.5%.
This lowered hike will be paid for through a 29.53 increase in the affordability subsidy paid by large electricity consumers, which will result in their tariffs being hiked by 19.09% from the 1st of April.
Head of Energy Secretariat, Sampson Mamphweli says this tariff increase is not good for the economy nonetheless.
“The tariff itself in general is going to affect prices elsewhere within the economy. So what happens is the cost of production of goods and services is going to rise and one that happens the businesses that are providing these goods and services then pass over that cost to the consumers.”
Western Cape government describes Eskom’s electricity tariff hikes as outrageous:
Source: SABC News (sabcnews.com)