09.09.2025
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Cosatu warns of strike amid 8.7% electricity price hike

7 mins



  • Electricity pylons.

The Congress of South African Trade Unions (Cosatu) has called on government to immediately intervene to bring down the ever increasing electricity prices.

This, as consumers face an electricity price hike of 8.7%, in the next financial year.

The National Energy Regulator of South Africa (NERSA) conceded to a R54 billion settlement error through a court process, which allows Eskom to claw back the revenue shortfall from consumers through further tariff increases.

The move will see consumers paying an additional tariff hike of up to 8.7% in 2026-27, and 8.8% the following financial year.

The labour federation says as part of its efforts to shield the struggling consumer, it may call for strike action soon.

Cosatu says consumers are already battling to stay afloat financially; it wants government to intervene.

“First is short-term relief to give some sort of relief to these affected companies. It can be in the form of reduced tariffs, tax relief, relief from the Department of Trade, Industry and Competition (DTIC), and so forth. For the longer term, we need to actually address the fundamental causes of Eskom’s dependency upon these double-digit above inflation hikes,” says Cosatu parliamentary coordinator, Matthew Parks.

Consumers are bracing themselves.

Members of Parliament’s Electricity and Energy portfolio committee say they will raise the matter at its meeting, this coming week.

“This new tariff increase will force millions of South Africans into electricity or energy poverty and drive up inflation as an administered cost. Minister Kgosientsho Ramokgopa’s dream of reducing the cost of electricity is now turning into a nightmare. The African Christian Democratic Party (ACDP) calls on civil society, religious bodies, labour and business to collectively reject these new tariff increases using every legal and constitutional means possible,” says ACDP Deputy President, Wayne Thring.

“The Inkatha Freedom Party (IFP) calls for a diversified energy mix and more competition in the sector to lower costs and improve reliability. The IFP also urges closer cooperation between NERSA and Eskom to create a fair and efficient regulatory framework. In the short term, parliament must engage NERSA and Eskom to reduce or delay the hike, while working with Treasury to expand free basic electricity from 50kw to 100kw for poor households. In the long term, parliament must push for Eskom’s structural reform into separate entities,” says IFP Chief Whip, Nhlanhla Hadebe.

“The United Democratic Movement (UDM) rejects, with the contempt it deserves, the proposal to increase electricity by 8.7% which is more than double the inflation rate of 3.5% that comes at a time when South Africans are battling and struggling with the cost of living. We cannot support this and we will go to the committee and make our voices heard and reject it,” says UDM Chief Whip, Nqabayomzi Kwankwa.

“If we look at historically, over a decade, Eskom tariffs have increased 450%, have we received value for money? No. The utility is limping along; that is not competitive. It needs to look at itself if whether or not they are capable to meet the needs of South Africans,” says Democratic Alliance (DA) MP, Kevin Mileham.

Parks says Cosatu will table its proposals to the National Economic Development and Labour Council (NEDLAC), and if government does not come up with workable solutions, the federation will apply for a notice to strike, to force authorities to the negotiating table.

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