South African Parliament to Debate Eskom’s Energy Cost Hike Plan

(Bloomberg) -- South Africa’s parliament will debate a proposal from the nation’s state-owned energy utility that could see electricity tariffs rise as much as 40% next year, according to a statement from the Democratic Alliance party.

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National Assembly Speaker Thoko Didiza confirmed officials will discuss the legality of the energy regulator’s decision to allow Eskom to add an 8 billion rand ($448 million) “make-up tariff” next year.

The state-run company is also planning to request the National Energy Regulatory Authority approve a further 36% increase in electricity tariffs in 2025. Electricity prices have roughly tripled in South Africa over the past 14 years, even as sustained power cuts in Africa’s most-industrialized economy stagnated growth.

“The potential impact of a 40% electricity tariff increase is horrendous for South Africans already struggling under a cost of living crisis,” Kevin Mileham, a DA member of parliament, said in the statement. If the regulator grants Eskom’s request, the population will be forced to choose between buying food and making electricity payments, he added.

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