High Electricity Costs Could Trigger Unrest in South Africa, Warns Minister
Dr Kgosientsho Ramokgopa, South Africa’s Electricity and Energy Minister, has cautioned that soaring electricity costs pose a significant threat to social stability, warning they could spark unrest and undermine government legitimacy.
This warning comes as Eskom marks over 200 days of uninterrupted electricity supply, a milestone in the battle against load shedding. However, the minister’s concerns lie with the looming financial burden of proposed tariff increases, which he says could deepen poverty and become a “national security problem.”
Eskom’s Tariff Proposals and Public Reaction
The National Energy Regulator of South Africa (Nersa) is set to make a decision by January 2025 on Eskom’s proposed tariff hikes. These include a 36% increase for the 2025 financial year, followed by 11.8% and 9.10% increases for subsequent years.
Eskom officials have reported that public hearings on the matter highlighted the intense pressure these increases would place on vulnerable groups, particularly the poor and elderly. Many South Africans, already struggling to make ends meet, could see their financial situations worsen if the proposed tariffs are approved.
Economic and Social Impacts
Dr Ramokgopa outlined the harsh reality faced by pensioners, who receive a monthly grant of R2,190. He noted that the average electricity cost for low-income households is R1,200, consuming over half of their income.
“On one hand, the state provides social grants; on the other, it takes half of them away in electricity payments,” the minister said, describing the scenario as unsustainable.
Rising costs of basic services such as electricity and water are exacerbating economic hardships. Ramokgopa referred to the current situation as creating a “perfect storm” that could undermine South Africa’s stability and economic growth.
Load Shedding and Economic Recovery
Despite concerns over tariffs, the minister expressed optimism about Eskom’s recent improvements. He credited the utility’s enhanced performance for reducing load shedding and supporting economic growth.
“We are within touching distance of resolving load shedding, but we are not yet out of the woods,” Ramokgopa said. He projected that once South Africa achieves sustained electricity availability, economic confidence could be restored, potentially boosting GDP growth to 2.5%–3.5%.
The minister reiterated that achieving an Energy Availability Factor (EAF) of 70% is critical for meeting energy demands. He expects Eskom to reach this milestone by April 2025.
The Way Forward
Dr Ramokgopa underscored the urgency of finding solutions to the electricity cost crisis. Without action, the economic challenges facing millions of South Africans could escalate into a broader national crisis.
“We must resolve this issue as a collective. It is in our interest to ensure energy affordability and stability,” he said, urging stakeholders to work together to avoid a worsening situation.
