City of Cape Town to oppose 44% tariff hike at NERSA public hearings

CAPE TOWN - The City of Cape Town said it will oppose a 44% electricity tariff hike on behalf of residents at Monday’s public hearings by the National Energy Regulator of South Africa (NERSA).  

The countrywide hearings kick off in the city on Monday as NERSA considers Eskom’s sixth multi-year determination revenue application for 2025/26.  

The city’s Mayoral Committee Member for Energy, Xanthea Limberg, said approving the massive increase will have a knock-on effect on what ratepayers are charged.  

“It’s unaffordable, unfair, and disconnected from the financial reality that households, businesses and our economy face. The ripple effect is profound, as approximately 75% of electricity tariff income is used to buy power from Eskom for distribution.”  

Limberg said Statistics South Africa (Stats SA) data shows Cape Town has the highest proportion of residents benefiting from free basic water and electricity.  

The city said it has reduced the cost of electricity for indigent households over the last two years by over 40% and raised the number of units that can be bought by lifeline customers from 350 to 600 units per month.  

“This increase on the back of massive hikes is a major threat for the municipality, service delivery, social assistance, and residents and businesses in general.”