South Africa is facing a critical moment as rising electricity prices threaten to deepen existing economic challenges, especially for the country’s most vulnerable communities. The state-owned power utility, Eskom, has proposed significant price hikes over the next several years to manage its debt burden. However, these increases have drawn widespread criticism from industry experts and the South African Human Rights Commission (SAHRC).
The commission has warned that these hikes could lead to social unrest in the nation’s poorest areas, as many already struggle to afford necessities. This article examines the proposed price increases, the backlash from experts and human rights advocates, and the potential implications for South Africa’s social stability.
Contents
Social Unrest Warning For South Africa
The South African Human Rights Commission (SAHRC) has issued a warning, expressing concern that Eskom’s recently proposed electricity price hikes could trigger social unrest, particularly within the country’s poorer communities.
Eskom’s Price Increase Proposal
On 23 September 2024, the National Energy Regulator of South Africa (Nersa) released Eskom’s multi-year price determination (MYPD). The proposal outlines significant price increases. For Eskom’s direct customers, the prices are expected to rise by 36.15% in the next financial year, while municipal customers could face a 43.55% hike.
Eskom has further proposed additional price increases over the next few years:
- 11.81% increase from 1 April 2026 to 31 March 2027
- 9.10% increase from 1 April 2027 to 31 March 2028
Criticism of Eskom’s Proposed Hikes
Many experts have voiced their concerns, including Chris Yelland, a respected energy analyst and founder of EE Business Intelligence. Yelland criticized Eskom’s drastic price hike proposals, noting the substantial disparity between the proposed increases and inflation rates.
“After years of raising prices two to five times the inflation rate, how can Eskom now justify a 35% price increase, seven times the inflation rate, starting on 1 April 2025?” Yelland questioned. He added that additional hikes planned for 2026 and 2027—at two to three times the inflation rate—are equally excessive.
Human Rights Concerns Over Burdening the Poor
Chris Nissen, the South African Human Rights Commission chair, raised ethical concerns about Eskom’s strategy to recover its financial losses. He questioned why the national power utility targets South Africa’s poorest communities to shoulder the debt burden.
Nissen pointed out that mismanagement within Eskom had led to its heavy financial debt, and rather than holding those responsible accountable, the company plans to impose the cost on struggling households. “It is unjust for poor communities to bear the consequences of poor governance,” Nissen told CapeTalk.
Potential for Social Unrest
Nissen also warned that the proposed price increases could provoke widespread social unrest. He explained that many in South Africa’s poorer communities are already struggling to meet their basic needs, and the significant electricity price hikes could push them over the edge.
“As the commission, we foresee that these kinds of issues are sparks in our community that can ignite unrest,” he said. He expressed concern that opportunistic individuals or organizations might exploit the situation for political or personal gain, using the hikes to fuel public protests and further unrest.
Conclusion
With the proposed price hikes set to take effect, many fear that the economic strain on already vulnerable communities could lead to widespread instability. The SAHRC’s warning signals the need for careful consideration of the potential social consequences of Eskom’s plans and greater accountability for those responsible for the mismanagement that led to the crisis.
Click Here To Know More
