Parliament, Tuesday, 13 October 2026 – The Standing Committee on Appropriations has expressed concern about Eskom’s proposed electricity tariff increases for the coming year, warning that increased electricity costs could deepen the financial pressures experienced by households amid rising inflation, persistently high living costs and a stagnant economy.
Eskom briefed the committee on its proposed electricity tariff increases of 8.83% for customers supplied directly by Eskom and 8.84% for municipalities purchasing electricity from Eskom, effective from 1 April 2027, subject to the approval of the National Energy Regulator of South Africa (NERSA). Eskom also briefed the committee on reforms aimed at supporting indigent households and addressing municipal debt owed to Eskom, reporting that municipal debt stood at R122.5 billion as of August 2026.
According to Eskom, defaulting metros have entered into payment arrangements that will take several years to implement, with their success dependent on continued payments and compliance.
Committee members questioned the proposed tariff increases, arguing that they were inconsistent with government’s commitment to combating poverty and unemployment. Members also raised concerns that higher interest rates and rising prices are exacerbating the affordability crisis faced by households and communities across the country.
The Chairperson of the committee, Dr Mmusi Maimane, called for a closer examination of NERSA’s role in determining electricity tariffs and Eskom’s submissions requesting tariff increases. Dr Maimane said that while the relevant committee can address operational matters, the Standing Committee on Appropriations has a responsibility to scrutinise appropriated funds and ensure their effective and accountable use.
Dr Maimane supported the proposal to pay the indigent electricity subsidy directly to Eskom, saying that this would reduce administrative costs and strengthen the utility’s revenue collection and financial planning.
“Rising electricity costs force households to choose between essential expenses such as school fees, food and electricity. We therefore need decisions that balance financial sustainability with households’ ability to pay,” said Dr Maimane.
Dr Maimane also commended Eskom’s leadership for addressing load shedding and improving electricity stability, noting that the utility’s achievements in reducing load shedding deserve recognition.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE STANDING COMMITTEE ON APPROPRIATIONS, DR MMUSI MAIMANE.
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