The inhabitants of Lenasia and the surrounding area, in particular those with financial problems such as retirees or people who cannot work due to diseases, fight under the burden of significant increases in electricity rates. The increases in the annual rates from ESKOM, combined with a collection of R200 of stress imposed by the city of Johannesburg, exerts serious pressure on these communities. This is exacerbated by the already demanding economic conditions that many of these residents are facing, such as bass incomes or financial instability.
The increase in electricity prices not only affects the daily costs of families, but also exerts greater pressure on the overall convenience of essential services. For residents who are already vulnerable, these increases can lead to difficult choices, such as cutting energy consumption, which can make their comfort and well -being in danger. These hikes often find them the most able to do them, such as retirees or people who live with fixed or low income.
These circumstances require an emphasis on the socio-economic difficulties with which the citizens of Lenasia face, as well as a more precise examination of the directives which can offer the most discreetly affected population groups. Government measures, subsidies or other initiatives aimed at alleviating the effects of these increases in interest in marginalized communities could be potential remedies.
The increase in the rate of 36.15% proposed compared to ESKOM for the financial year 2025/2026 aroused considerable concern throughout South Africa, in particular in the Gauteng communities which have considerably rejected it. The increase, which is part of the determination of the multi-late prices of ESKOM (MyPD), for the period between exercise 2026 and in the GJ2028, would increase to 495 billion R R for exercise 2026 in 2027 and 2028. This could lead to a cumulative increase of 66% during the application period.
Local municipalities argue that such an increase is excessive and unjustified as it would place a huge financial burden on residents, many of whom are already struggling with the recent 12.75% rate increase. The proposed increase could lead to even more severe economic problems, exacerbating issues such as poverty, unemployment and social unrest.
Many fear that this could exacerbate financial pressure on families and undermine the economic stability of communities, with potentially serious long-term social consequences. The rejection of the proposal reflects widespread concerns about Eskom’s pricing strategy and its impact on the wider population. City Power spokesperson Isaac Mangena has strongly criticised Eskom’s proposed 36.15% tariff increase for the 2025/2026 financial year, highlighting the serious impact it could have on local communities. Mangena stressed that while Eskom’s challenges are recognised, it is unfair to place the burden on residents. He warned that such a steep increase could lead to widespread discontent and potential unrest, similar to the tensions experienced earlier in the year.
He also highlighted that the economic impact of load shedding has already led to the collapse of many businesses and significant job losses, putting further strain on municipalities. Despite these challenges, Eskom expects residents to shoulder the financial burden through higher tariffs, without taking responsibility for the damage caused by the power outages. Mangena called for collective action against the proposed increases, urging residents and community organisations to join municipalities in submitting written objections. He stressed the importance of engaging the National Energy Regulator of South Africa (NERSA) to reconsider the proposal, given the broader social and economic implications. Municipalities are calling for a collaborative approach to find sustainable solutions that do not endanger citizens’ livelihoods.
In addition, municipalities are encouraging all stakeholders to provide written submissions on Eskom’s MYPD6 revenue application, with a public participation programme planned to allow for community involvement and feedback.
Indicative timeline for decision-making process:
Publication of consultation paper and Eskom revenue application for written stakeholder comments: 23 September 2024
Closing date for stakeholder comments on the consultation paper on Eskom revenue application. :1 November 2024
Public Hearings to take place from. 18 November-4 December 2024
Special ELS to recommend the Draft Decision
and Reasons for Decision :17 December 2024
Energy Regulator decision 20 December 2024
Indicative dates and venues for public hearings
Province Meeting dates:
Western Cape Physical Public Hearing 18-19 November 2024
Eastern Cape Physical Public Hearing 20 November 2024
Kwa-Zulu Natal Physical Public Hearing 21-22 November 2024
Free State Physical Public Hearing 25 November 2024
Northern Cape Physical Public Hearing 26 November 2024
Mpumalanga Physical Public Hearing 27 November 2024
Limpopo Physical Public Hearing 29 November 2024
North West Physical Public Hearing 2 December 2024
Gauteng Physical Public Hearing 3-4 December 2024
The Municipalities involved:
- City of Johannesburg Metropolitan (MOE City Power)
- City of Ekurhuleni Metropolitan
- City of Tshwane Metropolitan
- Sedibeng District
- Emfuleni Local
- Lesedi Local
- Midvaal Local
- West Rand District
- Merafong City Local
- Mogale City Local
- Rand West City Local
Where to submit written comments:
- Email: mypd@nersa.org.za
- Hand-deliver: Kulawula House, 526 Madiba Street, Arcadia, Pretoria
- Postal address: PO Box 40343, Arcadia, 0083, Pretoria, South Africa
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