Monday, April 1st, is when Eskom’s 12.74% hike in electricity prices for the 2024–2025 fiscal year will take effect. Hurry quickly, people of South Africa! Just a reminder that on Monday, April 1, 2024, Eskom will begin implementing its 12.74% rise in electricity prices for the 2024–2025 fiscal year.
Unfortunately, that isn’t a practical joke!
The South African National Energy Regulator, or Nesa, authorized a rise in energy rates of 18.65% in 2023 and 12.74% in 2024. The decision made by Nersa pertains to Eskom’s fifth Multi-Year Price Determination (MYPD) for years two (2023–24) and three (2024–25).
The authorized rise is nevertheless substantial and much more than inflation, even though it is generally less than what Eskom had requested. Eskom submitted applications in September 2022 for price increases of 32% for 2023–2024 and 10% for 2024–2025, which would result in recoveries of R351 billion and R381 billion, respectively.
Eskom is permitted by Nersa to recoup R352 billion in 2024–2025 and R318 billion in 2023–2024.
Nersa claims that difficult economic conditions, including as high interest rates, slow growth, significant unemployment, and load shedding, influenced the decision. Through its website, Eskom has made its tools for analyzing the changes available.
The most recent fuel price increases are scheduled to take effect next week, making it a difficult time for South Africans. The SARB offered no reprieve on borrowing rates either.
Mzansi, fasten your seatbelts—the journey just got rougher!
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