SAFTU says latest electricity tariff hike will push millions of SAns into poverty

CAPE TOWN - The South African Federation of Trade Unions (SAFTU) said more electricity tariff hikes will push millions of South Africans deeper into poverty.

SAFTU's concerns come after the National Energy Regulator of South Africa (NERSA) reached a settlement with Eskom for an additional R54 billion in revenue.

NERSA agreed to the multi-billion rand settlement after admitting errors in its calculations.

NERSA's settlement with Eskom will phase in the R54 billion in additional tariffs over the next three years.

SAFTU spokesperson Masuku said the settlement is another blow for consumers already struggling with rising living costs.

"These increases will deepen energy poverty as poor households are disconnected or forced to limit usage."

At the same time, Eskom spokesperson Daphne Mokwena confirmed a tariff increase is on the cards.

"To address the adjustment, NERSA will implement a tariff increase of approximately 3% over the next two years."

Mokwena added that both parties have committed to maintaining single-digit increases to minimise the impact on consumers.