Azra Hoosen | ah@radioislam.co.za
7 November 2024 | 10:30 CAT
2 min read

The Organisation Undoing Tax Abuse (OUTA) has opposed Eskom’s application for a 66% electricity price increase over the next three years, arguing it is excessive and unaffordable for South Africans.

OUTA’s submission to the National Energy Regulator of South Africa (NERSA) calls for a rejection of the proposed increases, advocating for better cost management, improved transparency, and a shift towards sustainable energy.

OUTA Senior Project Manager Estienne Ruthnam emphasised the need for Eskom to focus on cost-cutting and improving efficiency rather than passing on rising costs to consumers.

“This would put a huge burden and pressure on households, families, businesses and the economy. OUTA believes this increase will further harm an already struggling economy since energy is such an essential service in the country,” she said.

The submission highlights serious concerns about Eskom’s proposed electricity price increases for 2025 to 2027. OUTA’s main argument is that the 66% price hike — with increases of 36.15% in 2025, 11.81% in 2026, and 9.1% in 2027 — is too high and will negatively impact South Africa’s economy, consumers, and society. “This will raise the electricity prices far above inflation, with consumers paying more year after year,” she said.

According to Ruthnam, OUTA recommends that Eskom focus on reducing operational costs, improving transparency, conducting independent studies on its operations, and accelerating the transition to cleaner, more affordable energy.

NERSA is currently reviewing public feedback and will hold hearings from November 18th to December 4th 2024, before making a decision. “OUTA believes that instead of passing costs onto consumers, they need to look at finding their own internal inefficiencies,” she remarked.

NERSA is expected to decide on Eskom’s application by December 20.

LISTEN to the full interview with Ml Sulaimaan Ravat and Estienne Ruthnam, OUTA Senior Project Manager, here.