Thursday, 30 January 2025

The Economic Freedom Fighters (EFF) vehemently opposes the reckless decision by the National Energy Regulator of South Africa (NERSA) to greenlight Eskom’s 12.7% electricity tariff increase, set to take effect on 1 April 2025. This move is yet another assault on the working class and the poor, who are already grappling with relentless economic hardships.

In September 2024, Eskom sought approval for an outrageous 66% multi-year tariff escalation, with a staggering 36.15% increase proposed for 2025 alone. While NERSA scaled down the demand to just over 24%, with a planned 12.7% hike this year and the rest spread across the next two years, it remains unjustifiable and will inflict severe financial distress on households, businesses, and the broader economy. Millions of South Africans, already struggling to afford basic necessities, now face deeper economic exclusion and worsening inequality. At a time when food prices, fuel costs, and other essential goods are skyrocketing, imposing yet another electricity price hike is a direct attack on the livelihoods of ordinary people.

This is not the first time that NERSA has enabled Eskom’s exploitation of the people. In 2023, the regulator approved a cumulative 33.77% increase, implemented in two phases: 18.65% in 2023 and 12.74% in 2024. This persistent escalation is proof that the ruling elite has abandoned its duty to ensure electricity remains an affordable public good that fuels economic growth and human development. Eskom was built with public funds, and its energy should not be commodified for profit while the masses are left in the dark.

The crisis at Eskom is not an accident. It is the product of deliberate mismanagement, looting, and a calculated agenda to privatise South Africa’s energy sector for the benefit of capitalist vultures. This same neoliberal strategy has pushed nations like Britain into an energy catastrophe, where privatised electricity has led to unbearable costs and widespread instability. The EFF refuses to let South Africa follow this ruinous path.

We have consistently called on NERSA to cease licensing private energy suppliers and to reject Eskom’s unreasonable price demands. The people of South Africa should not be forced to pay for the state’s failure to expand power generation capacity or to hold corrupt officials accountable for Eskom’s financial collapse. Instead of punishing the poor, Eskom must prioritise internal reforms, root out corruption, and enforce strict accountability in its operations.

While some are praising Eskom for ending loadshedding—equivalent to applauding a fish for swimming—the reality is far less commendable. Marginalised communities, particularly in rural areas and townships, continue to suffer from unspoken “load reduction” tactics, while affluent suburbs remain shielded from these power cuts. The failure to provide a basic human right like electricity cannot be celebrated as an achievement. The so-called “grand coalition” of the DA and ANC has done nothing to ease the economic hardships faced by ordinary people. Instead, they have entangled themselves in a corrupt arrangement that serves only their interests, treating the suffering of the masses as an afterthought.

The EFF demands an immediate review of NERSA’s tariff approval process and calls for an urgent intervention to halt the planned tariff increases for 2026 and 2027. Furthermore, we insist that the government invest in sustainable and alternative energy solutions, diversifying the country’s power supply and reducing the nation’s dependency on Eskom’s failing monopoly.

We will not stand idle while South Africans are forced to choose between electricity and survival. The EFF will continue to fight for an energy system that serves the people, not corporate interests, and we will hold those responsible for Eskom’s collapse accountable. The struggle for affordable, reliable electricity is a struggle for economic freedom—and we will not retreat.

ISSUED BY THE ECONOMIC FREEDOM FIGHTERS

Leigh-Ann Mathys (National Spokesperson) 082 304 7572

Thato Lebyane (Media Enquiries) 078 304 7572