IN CONVERSATION WITH NAVILLE VAN ROOY (Community Outreach Coordinator at The Green Connection)
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Environmental justice organisation The Green Connection has urged the
National Energy Regulator of South Africa (NERSA) to reject further electricity
tariff increases proposed under Eskom’s Sixth Multi-Year Price Determination
(MYPD6), warning that rising power prices could deepen poverty and worsen
inequality across the country.
The organisation submitted its formal response to NERSA ahead of the 21
January deadline, arguing that South Africa’s current electricity pricing
system is unjust, outdated and no longer fit for purpose.
09:35
South Africa remains one of the most unequal countries in the world, and
The Green Connection says continued tariff hikes threaten already vulnerable
households struggling to afford basic services.
Legal obligations under environmental law
The Green Connection’s Programmes and Advocacy Lead, Lisa Makaula, said
NERSA is legally required to consider the social, economic and environmental
consequences of its decisions.
“NERSA is bound by the environmental obligations set out in Section 2 of the
National Environmental Management Act,” Makaula said. “These principles
require that impacts are properly considered, that decisions are taken
openly, and that access to information is guaranteed. These are not optional
extras — they are legal obligations.”
The organisation argues that NERSA should reconsider Eskom’s multi-year
tariff structure and adopt a pricing model that genuinely serves the public
interest, while still ensuring the utility’s long-term sustainability.
Rising tariffs deepening poverty and inequality
Makaula warned that Eskom’s attempt to recover revenue shortfalls —
linked to reporting errors around depreciation and the regulatory asset base
— should not be passed on to consumers.
“Ordinary people should not be burdened by regulatory or institutional
failures,” she said. “With persistent price hikes, millions of households may
be forced to choose between food, school expenses and electricity.”
The Green Connection also endorsed a submission by environmental
organisation groundWork, which highlighted South Africa’s worsening
poverty crisis.
According to groundWork, an estimated 13.2 million people were living in
extreme poverty in 2024, surviving on less than US$2.15 a day — about R40
per day at current exchange rates. This represents nearly 140,000 additional
people falling into extreme poverty compared to the previous year.
Without urgent reform, the organisation warns, these figures are expected to
rise further.
Eskom’s 2024 revenue application proposed a 36% tariff increase for
2025/26, followed by 12% in 2026/27 and 9% in 2027/28. While NERSA
approved lower increases, The Green Connection says the approved hikes
still exceed inflation and remain unaffordable for most households.
Minister acknowledges crisis, but policy remains unchanged
The organisation has also called on Electricity and Energy Minister
Kgosientsho Ramokgopa to urgently review South Africa’s electricity pricing
policy.
The Green Connection’s Neville van Rooy said the minister has publicly
acknowledged that steep electricity price increases are worsening energy
poverty and are unsustainable.
“While we welcome the Minister’s acknowledgement, the reality is that the
electricity pricing policy and cost-reflective tariff framework have still not
been reviewed,” van Rooy said. “This is precisely why South Africa remains
trapped in a broken electricity system.”
He added that without reform, NERSA’s decisions remain constrained by
outdated rules that no longer serve the public interest.
Van Rooy also stressed the need for greater transparency, particularly
around Eskom’s regulated asset base.
“Without clear information on how Eskom’s asset values are calculated, the
public is being asked to accept price increases blindly — and that is
unacceptable,” he said.
High Court ruling raises further concerns
These transparency concerns were reinforced by a recent High Court
judgment, which noted that in the dispute between Eskom a
National Energy Regulator of South Africa (NERSA) to reject further electricity
tariff increases proposed under Eskom’s Sixth Multi-Year Price Determination
(MYPD6), warning that rising power prices could deepen poverty and worsen
inequality across the country.
The organisation submitted its formal response to NERSA ahead of the 21
January deadline, arguing that South Africa’s current electricity pricing
system is unjust, outdated and no longer fit for purpose.
09:35
South Africa remains one of the most unequal countries in the world, and
The Green Connection says continued tariff hikes threaten already vulnerable
households struggling to afford basic services.
Legal obligations under environmental law
The Green Connection’s Programmes and Advocacy Lead, Lisa Makaula, said
NERSA is legally required to consider the social, economic and environmental
consequences of its decisions.
“NERSA is bound by the environmental obligations set out in Section 2 of the
National Environmental Management Act,” Makaula said. “These principles
require that impacts are properly considered, that decisions are taken
openly, and that access to information is guaranteed. These are not optional
extras — they are legal obligations.”
The organisation argues that NERSA should reconsider Eskom’s multi-year
tariff structure and adopt a pricing model that genuinely serves the public
interest, while still ensuring the utility’s long-term sustainability.
Rising tariffs deepening poverty and inequality
Makaula warned that Eskom’s attempt to recover revenue shortfalls —
linked to reporting errors around depreciation and the regulatory asset base
— should not be passed on to consumers.
“Ordinary people should not be burdened by regulatory or institutional
failures,” she said. “With persistent price hikes, millions of households may
be forced to choose between food, school expenses and electricity.”
The Green Connection also endorsed a submission by environmental
organisation groundWork, which highlighted South Africa’s worsening
poverty crisis.
According to groundWork, an estimated 13.2 million people were living in
extreme poverty in 2024, surviving on less than US$2.15 a day — about R40
per day at current exchange rates. This represents nearly 140,000 additional
people falling into extreme poverty compared to the previous year.
Without urgent reform, the organisation warns, these figures are expected to
rise further.
Eskom’s 2024 revenue application proposed a 36% tariff increase for
2025/26, followed by 12% in 2026/27 and 9% in 2027/28. While NERSA
approved lower increases, The Green Connection says the approved hikes
still exceed inflation and remain unaffordable for most households.
Minister acknowledges crisis, but policy remains unchanged
The organisation has also called on Electricity and Energy Minister
Kgosientsho Ramokgopa to urgently review South Africa’s electricity pricing
policy.
The Green Connection’s Neville van Rooy said the minister has publicly
acknowledged that steep electricity price increases are worsening energy
poverty and are unsustainable.
“While we welcome the Minister’s acknowledgement, the reality is that the
electricity pricing policy and cost-reflective tariff framework have still not
been reviewed,” van Rooy said. “This is precisely why South Africa remains
trapped in a broken electricity system.”
He added that without reform, NERSA’s decisions remain constrained by
outdated rules that no longer serve the public interest.
Van Rooy also stressed the need for greater transparency, particularly
around Eskom’s regulated asset base.
“Without clear information on how Eskom’s asset values are calculated, the
public is being asked to accept price increases blindly — and that is
unacceptable,” he said.
High Court ruling raises further concerns
These transparency concerns were reinforced by a recent High Court
judgment, which noted that in the dispute between Eskom a
