NATIONAL NEWS - The Green Connection has called on the National Energy Regulator of South Africa (NERSA) to reject Eskom’s proposed 8.83% electricity tariff increase for the 2027/28 financial year, warning that higher prices would add to the financial pressure on households and small businesses.

The organisation, which works with coastal communities and small-scale fishers, has also called for an extension of the public participation process, arguing that a single day of public hearings does not provide sufficient opportunity for meaningful engagement on decisions affecting millions of electricity consumers.

“Communities need adequate time and accessible opportunities to understand the proposal, raise concerns, and contribute to decision-making that will directly affect their lives and livelihoods,” says Lisa Makaula, advocacy lead at The Green Connection.

The proposed increase follows an approved 8.76% tariff increase for 2026/27. The revised tariff path followed a redetermination of Eskom’s revenue after regulatory errors and a court process.

The proposed 8.83% increase for 2027/28 remains subject to regulatory approval. Parliamentary reporting has also noted a proposed 8.84% increase for customers supplied by municipalities purchasing electricity from Eskom.

The Green Connection says affordability should be central to the regulator’s decision, particularly as households contend with rising living costs and unemployment.

“Families are having to choose between electricity or meeting other basic needs, while unemployment and economic pressures continue to undermine household security,” Makaula says.

Concerns over electricity market reforms

The organisation argues that tariff decisions should be considered alongside broader changes to South Africa’s electricity sector, including the development of the South African Wholesale Electricity Market, Eskom’s unbundling and wider market reforms.

These changes are expected to affect how electricity is generated, traded, supplied and priced. The Green Connection says consumers need accessible information about the implications before decisions are finalised.

“The question is not simply whether Eskom says it needs more money. Can consumers afford to pay more? Are the costs being recovered prudent and justified? And is the electricity system – being built with consumers’ money - delivering value for money for those same consumers?” Makaula says.

She points to youth unemployment as another factor in the affordability debate. Statistics South Africa reported that the unemployment rate among people aged 15 to 34 reached 47.4% in the second quarter of 2026, an increase of 1.5 percentage points from the previous quarter.

The organisation says public participation should extend beyond publishing documents and inviting written submissions. It wants communities to have sufficient time to understand complex proposals, ask questions and influence decisions.

Neville van Rooy, outreach ambassador for The Green Connection, has called for greater transparency around the costs used to justify tariff increases.

He says NERSA should scrutinise whether costs submitted by Eskom and other electricity suppliers are prudent, reasonable and necessary, and ensure that consumers can understand the basis for proposed increases.

The organisation has also called for South Africa’s Electricity Pricing Policy to be updated annually and aligned with a regularly reviewed Integrated Energy Plan.

Renewable energy and the cost of electricity

The Green Connection says environmental and social costs should also be considered when determining the country’s energy future.

It argues that continued reliance on fossil fuels carries economic, environmental and social consequences, while renewable energy could help reduce exposure to volatile fuel costs and strengthen energy security.

The organisation points to findings published by the International Renewable Energy Agency in 2021, which showed that 62% of renewable power capacity added globally in 2020 had lower costs than the cheapest new fossil-fuel alternative at the time.

The Green Connection says solar and wind power, supported by energy storage, offer opportunities to support a cleaner and more resilient electricity system.

Van Rooy says electricity decisions should take account of sustainable development principles, including social, economic and environmental impacts, transparent decision-making and access to information.

He says the cost of electricity affects household budgets, the viability of small businesses and economic opportunities for young people, making tariff decisions a matter of public interest rather than a purely technical regulatory issue.

Coastal communities feel the pressure

Small-scale fishers and other community members consulted by The Green Connection say rising electricity and fuel costs are placing additional pressure on already strained household budgets and livelihoods.

Ernest Titus, a small-scale fisher from Lamberts Bay on the West Coast, says higher costs make it more difficult for fishers to go to sea and earn a living while covering household expenses.

Gina Orlam, from Port Nolloth, says rising prices are affecting families whose incomes are not keeping pace with the cost of living. She also raised concerns about unemployment and the limited opportunities available to young people.

Young activist Chanel Jaar, also from Port Nolloth, says R100 buys very few electricity units, making it difficult for pensioners dependent on social grants to keep their lights on. She also points to the fuel costs faced by fishers from Port Nolloth, Hondeklipbaai and Doringbaai, saying poor catches can leave them operating at a loss.

Moeketsi Diba, representing community organisations Green Futures and Environmental Justice Network in Botshabelo in the Free State, has called for affordable energy and greater opportunities for communities to generate their own electricity through solar technology.

Ntsindiso Nongcavu, acting chairperson of the Cacavu Fishing Cooperative in Port St Johns, says higher electricity and fuel costs are increasing the cost of providing services and transporting fish.

He also raised concerns about fish carcasses washing ashore along the Wild Coast, saying communities need assistance with clean-up operations and support when environmental events affect their livelihoods.

Nongcavu says climate change and offshore oil and gas developments present additional concerns for marine ecosystems and fishing communities. He argues that coastal communities need greater recognition and support when disasters disrupt their income.

Call for consumer protection

The Green Connection is urging NERSA to reject the proposed 8.83% tariff increase until the implications of electricity market reforms have been properly considered and explained to the public.

The organisation says electricity costs should be transparently scrutinised and pricing decisions aligned with a regularly reviewed national energy plan that delivers value for money.

It maintains that consumers need meaningful opportunities to participate in decisions about the electricity system they depend on, particularly as households and businesses face continued pressure from rising costs.

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