Eskom’s 36% Price Hike: A Declaration of War on the Economy and the Poor
In a shocking move, Eskom, the state-owned utility, has announced a 36% price hike, citing the government’s inability to rein in delinquent municipalities and the regulator’s errors in adjudicating earlier applications to boost tariffs. But is this just a thinly veiled attempt to hold the nation hostage?
The hike, which will add to the 600% jump in electricity prices since 2006, has raised the ire of civil society, municipalities, and the government. Energy Minister Kgosientsho Ramokgopa has warned that it will undermine economic growth and deepen poverty, while the government has threatened to intervene to keep prices lower.
But Eskom’s General Manager for Regulation, Hasha Tlhotlhalemaje, has a different tale to tell. In a provocative statement, he claimed that the company is "striving to be more self-sufficient and not remain a burden on government finances." But is this just a cynical attempt to shift the blame and justify the increase?
The real question on everyone’s mind is: where will this 36% price hike leave the average South African? With an economy already reeling from the effects of the pandemic and load shedding, this increase will be the final straw for many struggling households. It’s a recipe for disaster, and one that will only serve to widen the wealth gap and deepen poverty.
But don’t take our word for it. Stats SA has warned that electricity prices have already pushed millions of South Africans into energy poverty, with the poorest households spending up to 15% of their income on electricity. This new hike will only exacerbate the problem, leaving many struggling to make ends meet.
And what about the $250 billion bailout Eskom is receiving from the government? Is this not enough to address the company’s debt and keep prices in check?
As the debate rages on, one thing is clear: the future of energy in South Africa hangs in the balance. Will we continue down the path of inequality and poverty, or will we find a new way to power our economy and our lives?
Stay tuned for more on this developing story…
