AfriForum Gears Up to Challenge Proposed Eskom Tariff Hikes

Civil rights organization AfriForum has voiced its determination to engage intensely in the upcoming public consultation process concerning the proposed electricity tariff increases put forward by Eskom, South Africa's main electricity supplier. The group has signaled its readiness to mount a legal challenge should the National Energy Regulator of South Africa (NERSA) approve what it deems an "irrational" tariff hike.

The steep increase proposed by Eskom amounts to a 36% escalation in power tariffs, potentially having a substantial impact on South African consumers. NERSA, having received the application from Eskom for tariff hikes for the financial years stretching from 2025 to 2028, is now obligated to follow prescribed regulatory processes, which include rigorous prudency reviews and public consultations.

NERSA's commitment to conducting thorough prudence tests is imperative. These will assess whether aspects of Eskom's application warrant exclusion or if they should be passed onto the consumer. Such scrutiny is essential in ensuring that NERSA's decisions reflect sound judgment, considering Eskom's operational and financial challenges against the backdrop of consumers who are already burdened by economic pressures.

AfriForum, which has actively participated in tariff review processes for eight years, is steadfast in its representation of consumers, seeking to wield influence over the discussions to prevent unwarranted financial strain on the populace. Morné Mostert, the manager of Local Government Affairs at AfriForum, reaffirmed the organization's advocacy role, pledging to oppose any unreasonable tariff increases by Eskom or NERSA. The organization’s past commitment to contesting unfair increases, especially those approved for municipalities, underscores its resolve in this regard.

Beyond the financial implications for consumers, the proposed tariff increases are indicative of broader challenges within South Africa's energy sector, including reliability of power supply and sustainability of energy utilities. In this light, the critical examination and public debate of Eskom's tariff proposal by entities like AfriForum, as well as by individual consumers and businesses, will be crucial in charting the way forward for the country's energy landscape.

The public consultation process offers a democratic space for stakeholders to express support or dissent regarding the proposed tariff adjustments. It is a period when consumer voices can be amplified, potentially steering regulatory decisions in a manner that balances the need for a stable power supply with the economic realities faced by the country's residents.

As AfriForum gears up for the consultations and potential legal pathways, South African consumers are reminded of the importance of participating in public hearings and submitting comments. Active civic engagement, supported by organizations like AfriForum, can serve as a check and balance against decisions that may not fully account for consumer interest or sustainable energy policy.