In a bold stand against rising electricity costs, the National Union of Metalworkers of South Africa (Numsa), ActionSA, the South African Communist Party (SACP), and concerned residents of Soweto have rallied their voices against Eskom’s alarming proposal of significant tariff increases.
During a public hearing at Uncle Tom’s Hall in Orlando West, Soweto, on Tuesday, representatives from these groups delivered compelling arguments to the National Energy Regulator of South Africa (NERSA), expressing deep concerns about the potential fallout on South African businesses and communities.
The public hearing was the first of several taking place in Soweto before the series shifts to KwaZulu-Natal and other provinces. These hearings are centred around Eskom’s Sixth Multi-Year Price Determination (MYPD 6) revenue application, which outlines substantial increases for the financial years 2025/26, 2026/27, and 2027/28.
The proposed hikes come amidst a context of desperate economic conditions, with potential increases reaching an eye-watering 36% in 2026.
Constance Mnguni, a concerned resident, voiced the distress felt by many in the community, saying: “We as the people of Soweto are suffering. Now we are going to be poorer and more disadvantaged. NERSA and Eskom must understand that there are child-headed households, pensioners, and unemployed people living in Soweto.”
Her sentiments resonated with many who fear that such price hikes would further marginalise already vulnerable citizens struggling to make ends meet.
Portia Mahange, another Soweto resident, underscored the need for a well-informed dialogue between Eskom and the community.
“It’s a small hall for the people of Soweto. We need to be taken seriously… People were rushed to Midway, which is not accessible for our community. We need more venues for direct engagement,” she emphasised.
Her remark highlights the frustration with the current arrangements, which many feel do not cater effectively to the needs of Soweto’s populace.
Accompanying these resident testimonies, Numsa General Secretary Irvin Jim provided a stark overview of Eskom’s revenue application.
He warned that the proposed increases total R446 billion for the financial year 2026, escalating to R537 billion by 2028. These figures raise alarm bells among stakeholders, with customers facing increases of 44% for municipal usages in 2026 alone.
Echoing the sentiments of the residents, Jim argued that such hikes would exacerbate the already challenging environment for small to medium-sized enterprises, which are hampered by high operational costs.
“The high cost of electricity will deepen unemployment, poverty, and inequality,” he stated. “It will strangle any possibility of entrepreneurship in townships and small towns, and will destroy any prospects of growing our economy.”
ActionSA representative, Siyabonga Zwane, also expressed that the proposed increases were “anti-poor”, pointing to the already burdensome financial realities faced by many South Africans.
“Our people are unemployed and struggling to make ends meet,” he highlighted, stressing the need for a more equitable approach to electricity pricing.
DA Johannesburg Shadow MMC for Infrastructure, Nicole Van Dyk, speaking on the 40% electricity increase, said: “Every sphere of government is asking you, the people of South Africa to pay more, but what do you get? You get nothing in return. We live in Johannesburg. We live in Soweto and all we see is power cuts. You get load reduction almost every single day.”
The proposed increase was also rejected by Earthlife Africa Johannesburg, a community organisation that also joined the public hearings in Soweto.
Ketshepaone Modise, representing the group, said Eskom’s proposed 36% electricity tariff increase is a direct attack on the poor.
“This tariff hike is a direct attack on poor and working-class South Africans,” said from Earthlife Africa, “and we call on Nersa to reject this unaffordable proposal”.
The demonstrators called for a shift towards renewable energy solutions that prioritise marginalised communities, arguing that the hike contradicts South Africa’s commitments to a Just Energy Transition while failing to address years of alleged corruption and mismanagement at Eskom.
“Nersa must reject the MYPD6 tariff hike as both unjust and regressive. “Instead, the regulator should push Eskom to embrace a future built on energy justice and sustainability. This includes investing in community-owned renewable energy projects, re-allocating Free Basic Electricity resources to support solar installations for households, and ensuring universal access to clean, affordable energy. These measures would alleviate energy poverty and reduce dependence on unsafe, polluting alternatives.”
The Star