Neelam Rahim | neelam@radioislam.co.za

3-minute read
31 January 2025 | 19:30 CAT

South Africans brace for renewed power cuts as Eskom announces a 12.7% tariff hike amid ongoing infrastructure challenges.

The return of load shedding, just a day after the National Energy Regulator of South Africa (NERSA) granted Eskom a tariff increase of 12.7%, has raised fresh concerns about the state of the power utility. The increase, which takes effect on April 1, is significantly lower than Eskom’s initial request of 36.1%. However, given the history of excessive tariff hikes over the past 15 years, critics argue that even this approved increase remains unjustifiable.

Energy analysts and the public alike have expressed scepticism about the timing of the return of load shedding, especially after Eskom celebrated 300 consecutive days without power cuts. Wayne Duvenhage, CEO of the Organisation Undoing Tax Abuse (OUTA), suggests that while conspiracy theories may arise, the reality is that Eskom’s aging coal-fired power stations remain unreliable, with unplanned outages plunging the country back into rolling blackouts.

“The recent Auditor-General report detailed rampant maladministration and corruption within Eskom, highlighting systemic failures that continue to plague the entity. It is, therefore, not surprising that we are seeing this sudden re-emergence of load shedding,” Duvenhage told Radio Islam International.

Despite minor operational improvements, Eskom remains far from stability. Efforts to clean up corruption and improve efficiency have uncovered a massive ghost-token fraud network, costing the entity approximately R27 billion annually. “This is money that Eskom should have been recovering instead of burdening South Africans with relentless tariff hikes,” Duvenhage noted.

NERSA’s approval of the 12.7% increase, although lower than previous hikes, is still more than three times the current inflation rate. Critics argue that the regulator has failed to hold Eskom accountable for its financial mismanagement and instead continues to place the burden on consumers. “Electricity prices have skyrocketed over 500% in the past 15 years, and yet we still face persistent load shedding,” Duvenhage added.

Meanwhile, South Africa’s shift towards renewable energy is proving essential. The private sector and households have invested in solar energy, reducing their dependence on Eskom. Industry estimates suggest that approximately six gigawatts of energy have been sourced privately, preventing further blackouts. “Without this transition, load shedding would have been far worse,” Duvenhage stated.

With Eskom grappling with operational inefficiencies, financial mismanagement, and an increasing shift towards private energy solutions, the question remains: How long before South Africans completely abandon reliance on the embattled power utility?

Listen to the full interview on the Daily Round Up with Moulana Junaid Kharsany and OUTA CEO Wayne Duvenhage here.