Yesterday’s public hearing on the National Energy Regulator of South Africa’s (NERSA) proposed tariff increases has highlighted several critical concerns, including poor venue selection and the exclusion of South Africans most affected by these decisions.
It is deeply concerning that only three political parties presented their views on this matter, which has far-reaching implications for millions of citizens. The absence of the governing parties, who frequently claim to represent “our people,” underscores a blatant disregard for the communities they are supposed to serve.
The choice of venue for this hearing was equally troubling. Public hearings must prioritise accessibility, yet this venue was located far from the communities most impacted by the proposed increases. While some attendees were travelled from nearby areas, expecting individuals from outlying regions to travel 120 kilometres to participate—particularly those without financial means—is both impractical and unjust. This exclusion represents not only a logistical failure but a deliberate marginalisation of vulnerable South Africans.
Moreover, the public was denied the opportunity to ask important questions and receive the answers they needed. This reinforces the perception that the hearing was more of a public relations exercise than a sincere attempt to engage in meaningful public participation.
These proposed tariff hikes come at a time when South Africa’s economy is stagnating. According to the National Treasury, economic growth is projected at a meagre 1.1% over the next three years, far below the growth seen in other emerging markets. Against this backdrop of deepening poverty and rising unemployment, increasing electricity tariffs will further devastate households and struggling businesses.
Between 2007 and 2022, electricity tariffs regulated by NERSA increased more than fourfold, while inflation rose by just over one-and-a-quarter times. Now, NERSA is proposing an additional 36.15% increase, compounded by its decision to recover R8 billion from its regulatory clearing account. This will result in a total increase of nearly 40% by 2025, making electricity unaffordable for millions of South Africans.
These proposed increases are not just unaffordable—they are an insult to struggling communities already burdened by poverty, hunger, and unemployment. The rising costs will place further strain on industries like agriculture and small businesses, weakening an already fragile economy.
We call for an immediate halt to these tariff increases and urge NERSA to pursue alternative strategies, including decentralised energy systems that empower municipalities to develop sustainable microgrids. South Africa needs an energy system that is affordable, stable, and equitable.
The exclusion of affected communities and the financial hardship caused by such decisions cannot be ignored. Decisions about essential services like electricity must prioritise inclusivity, fairness, and the well-being of South Africans.
ActionSA on the Exclusion of Citizens and the Impact of NERSA Tariff
Yesterday’s public hearing on the National Energy Regulator of South Africa’s (NERSA) proposed tariff increases has highlighted several critical concerns, including poor venue selection and the exclusion of South Africans most affected by these decisions.
It is deeply concerning that only three political parties presented their views on this matter, which has far-reaching implications for millions of citizens. The absence of the governing parties, who frequently claim to represent “our people,” underscores a blatant disregard for the communities they are supposed to serve.
The choice of venue for this hearing was equally troubling. Public hearings must prioritise accessibility, yet this venue was located far from the communities most impacted by the proposed increases. While some attendees were travelled from nearby areas, expecting individuals from outlying regions to travel 120 kilometres to participate—particularly those without financial means—is both impractical and unjust. This exclusion represents not only a logistical failure but a deliberate marginalisation of vulnerable South Africans.
Moreover, the public was denied the opportunity to ask important questions and receive the answers they needed. This reinforces the perception that the hearing was more of a public relations exercise than a sincere attempt to engage in meaningful public participation.
These proposed tariff hikes come at a time when South Africa’s economy is stagnating. According to the National Treasury, economic growth is projected at a meagre 1.1% over the next three years, far below the growth seen in other emerging markets. Against this backdrop of deepening poverty and rising unemployment, increasing electricity tariffs will further devastate households and struggling businesses.
Between 2007 and 2022, electricity tariffs regulated by NERSA increased more than fourfold, while inflation rose by just over one-and-a-quarter times. Now, NERSA is proposing an additional 36.15% increase, compounded by its decision to recover R8 billion from its regulatory clearing account. This will result in a total increase of nearly 40% by 2025, making electricity unaffordable for millions of South Africans.
These proposed increases are not just unaffordable—they are an insult to struggling communities already burdened by poverty, hunger, and unemployment. The rising costs will place further strain on industries like agriculture and small businesses, weakening an already fragile economy.
We call for an immediate halt to these tariff increases and urge NERSA to pursue alternative strategies, including decentralised energy systems that empower municipalities to develop sustainable microgrids. South Africa needs an energy system that is affordable, stable, and equitable.
The exclusion of affected communities and the financial hardship caused by such decisions cannot be ignored. Decisions about essential services like electricity must prioritise inclusivity, fairness, and the well-being of South Africans.