AfriForum to oppose Eskom's application for 8.8% tariff increase

AfriForum to oppose Eskom's application to further burden consumers to enrich themselves 7 September 2026 AfriForum will oppose Eskom's application for an average tariff increase of approximately 8.8% for 2027/28 and submit formal comments to the National Energy Regulator of South Africa (NERSA). According to the organisation, the power utility is set – within the span of just a few days—to celebrate a R30.35 billion profit, acknowledge billions of rands in recurring diesel payments, disclose extraordinary executive remuneration, and apply for this tariff increase. While Eskom applies for this tariff increase, citizens continue to grapple with rising living costs and years of sharp increases in electricity tariffs. According to Morné Mostert, AfriForum's Manager for Local Government Affairs, Eskom's logic does not add up. 'Electricity sales fell by 6.2%, yet its revenue increased because of ridiculously high tariffs. Now Eskom wants to raise tariffs, above inflation – again. In a market that is flooded with electricity consumers are now requested to pay more. General market rules would suggest that the prices would go down. Consumers are buying less electricity but paying more for it. According to AfriForum this is not a sustainable solution, but rather a vicious cycle. Higher tariffs push households and businesses towards alternatives, which reduces Eskom's sales even further and creates yet another excuse for more increases. 'It is indefensible for Eskom to plead poverty when applying for tariff increases and then boast about a multibillion-rand profit while paying executives millions of rand in incentives and extraordinary benefits. Consumers are expected to tighten their belts every year, but Eskom apparently applies a different standard to itself,' says Mostert. AfriForum emphasises that Eskom is not automatically entitled to recover every expense it incurs from electricity consumers. The Electricity Regulation Act 4 of 2006 together with its amendments requires tariffs to enable an efficient licensee to recover the costs of its licensed activities. The Electricity Pricing Policy further requires electricity prices to be based on an efficient and prudent utility, to reflect least-cost options and to exclude inefficiencies. Consumers should therefore only be expected to pay costs that are necessary, reasonable, efficient and prudently incurred. Excessive or inadequately justified remuneration, irregular expenditure and payments arising from failures to comply with procurement or contractual requirements should not be passed on through electricity tariffs. 'It is irrational that Eskom remains hundreds of billions of rands in debt while still paying substantial performance incentives. A utility in such a precarious financial position has no business rewarding its executives while demanding that struggling consumers pay even more,' Mostert adds. AfriForum will scrutinise Eskom's application and submit formal comments to NERSA. The organisation is of the opinion that the regulator should not only consider Eskom's prosperity, We hope that this time the regulator will consider not only Eskom's prosperity, but also whether ordinary consumers can actually afford what Eskom is demanding. 'Consumers cannot be expected to finance Eskom's profit party. If Eskom is selling less electricity, making billions in profit and improving its financial position, then continually increasing tariffs cannot be the answer,' concludes Mostert. Statement issued by Morné Mostert, Manager: Local Government Affairs, AfriForum, 7 August 2026