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City Power opposes Eskom’s proposed tariff changes


2 minutes

Johannesburg’s City Power has voiced its opposition to Eskom’s proposed tariff structure changes, citing concerns about the financial burden on consumers.

Eskom has submitted a request to the National Energy Regulator of South Africa (NERSA) for approval of a revised tariff system. The proposal includes a 36.15% tariff increase for the 2025-2026 financial year and adjustments to how electricity usage is calculated, including changes to peak-hour pricing.

City Power’s General Manager for Tariffing, Frank Hinda, highlighted the potential impact on consumers.

“Different customers will be affected differently, depending on structural change,” he said.

“For example, they are proposing to increase the summer tariffs and reduce the winter tariffs. So, in that case, your summer tariffs, you’re looking at an extra 10% on top of what NERSA would approve.”

Hinda also raised concerns about the introduction of a legacy charge. “They’re also proposing things like a legacy charge that is not clear…because the methodology doesn’t seem to provide for a legacy charge, yet they want a tariff that will be catering for that. That could then eventually result in additional costs to the customer,” he said.

City Power has called on NERSA to carefully consider the implications of the proposed changes, emphasizing the potential financial strain on households and businesses.

PODCAST | City Power’s Frank Hinda’s full interview on The Morning Brief: