In light of the recent 18.65% electricity tariff increase granted by the National Energy Regulator of South Africa (Nersa), President Cyril Ramaphosa said the government was considering additional mechanisms to deal with rising electricity costs. This will put more pressure on already cash-strapped South Africans.
Earlier this week, Ramaphosa appealed to the energy regulator to delay the price hike by modifying the period over which the tariffs will increase.
On Monday (30 January), the president wrote in his weekly letter to the public that it is important to affirm the independence of the body and the legal process it follows.
He said that tariffs that reflect the cost of producing electricity are necessary for Eskom’s financial sustainability and for the power utility to be able to service its debt and take on critical maintenance that is much needed to end load shedding.
He added, however, that there’s no question that raising electricity prices now will make South Africans’ lives more difficult.
“Rising food and energy prices are fuelling a cost of living crisis around the world, and the poor are being hardest hit. In South Africa, food prices have increased on average by 12% over the past year,” said Ramaphosa.
“This is the problem we face: we have to ensure that Eskom has the resources it needs to resolve the electricity crisis while protecting South Africans from the effects of higher prices.”
According to the president, there is no simple solution to the problem. Recent statements from the president also indicated that plans are being developed to sell excess household electricity back into the grid.