Chris Gilili reports in Elitsha that the recent electricity price increases approved by the National Energy Regulator of South Africa (Nersa) are causing problems for many families. Nersa approved 178 price hikes for the 2024/25 year, starting from July 1, 2024. Prepaid electricity users in Johannesburg now have to pay an extra R200 each month.
Nersa followed the Electricity Regulation Act and a High Court order to approve these increases. People in Buffalo City, Eastern Cape, protested against the price hikes. The Soweto Electricity Crisis Committee (SECC) has been speaking out about electricity issues for a long time, but City Power hasn’t listened. Zodwa Madiba from SECC said City Power should consult residents and not make decisions alone. She also suggested switching to renewable energy and fair pricing based on income.
Many people, especially working-class families, are struggling with the high cost of electricity. The price increases are as follows: 2024: 12.74%, 2023: 18.65%, 2022: 9.61%, and 2021: 15%. The South African Federation of Trade Unions (Saftu) criticized these increases, saying they hurt working-class households. Saftu pointed out that electricity prices have gone up by more than 539% from 2007 to 2024 and called for Free Basic Electricity (FBE) for the working class.
In Cape Town, residents are also finding it hard to pay for electricity. Zoleka Mngcwengi from Delft said her income from selling clothes is not enough to cover her electricity needs, especially with load shedding. The City of Cape Town has been criticized for raising electricity prices too much, beyond NERSA’s price guide.
Joburg City Power defended its R200 extra charge, saying it covers maintenance costs. Spokesperson Isaac Mangena said this charge helps keep the service reliable. He explained that prepaid customers did not pay for network maintenance before. Indigent customers get Free Basic Electricity and do not have to pay the new charges. City Power’s average price increase is 12.72%, but the most vulnerable customers only face a 6.21% increase.
