By Amy Musgrave
The SA Federation of Trade Unions is planning mass action over steeper than expected electricity hikes following the National Energy Regulator of SA (NERSA) admitting to making a mistake in its assessment of Eskom’s price hike application earlier this year.
“Saftu calls on all progressive forces — unions, community organisations and social movements — to mobilise against unaffordable electricity tariffs, privatisation and austerity policies. We will be taking this fight to NERSA, Parliament and the streets,” the federation’s general secretary, Zwelinzima Vavi, said on Thursday.
“The electricity system belongs to the people of South Africa, not the elites, not corrupt politicians, and not profiteers. Only a publicly funded, worker-controlled energy transition can ensure reliable, affordable and sustainable electricity for all.”
NERSA reached a settlement agreement with Eskom granting an additional R54 billion in revenue over the Sixth Multi-Year Price Determination (MYPD6) period.
This follows it admitting that a data input error affecting depreciation and the Regulatory Asset Base (RAB) led to a significant underestimation of the power utility’s revenue needs.
The settlement means that electricity prices will rise above inflation for two consecutive years. For the 2026/27 financial year, the tariff hike is 8.76%, up from 5.36%, and for the next year it is 8.83%, up from 6.19%.
According to analysts, South Africa will now have the highest electricity prices on the continent.
Vavi has warned that the hikes would deepen energy poverty as poor households would be disconnected or forced to limit usage, and would increase operating costs of municipalities, many of which were facing collapse.
It also placed further pressure on small businesses, industry and jobs.
“This settlement underscores a failed neoliberal approach to Eskom’s crisis. Instead of meaningful investment in public infrastructure and a just energy transition, government continues to burden consumers to bail out Eskom’s R400+ billion debt,” he said.
“Workers and communities are made to pay for decades of mismanagement, corruption and looting under state capture, while the architects of these crimes remain unpunished.”
Vavi said NERSA’s decision to settle outside the normal public participation process raised serious concerns about transparency and accountability.
The federation has demanded full public disclosure of the court process and modelling used in calculating the R54 billion shortfall and an urgent Parliamentary inquiry into the regulatory framework and Eskom’s financial model.
It also wants a moratorium on above-inflation tariff hikes until affordability studies and equity impact assessments are conducted.
“This settlement is a temporary legal compromise, not a solution. It reveals a regulatory and energy system in crisis. Workers, the poor and small businesses are once again being forced to finance Eskom’s mismanagement and the state’s austerity agenda,” Vavi said.
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