OUTA challenged Eskom’s proposed 66% price hike in a submission to the National Energy Regulator of SA (Nersa), urging that Eskom be pushed towards cost reductions. Here are our recommendations. 

OUTA’s Senior Project Manager, Estienne Ruthnam, emphasised that the proposed price increase—36.15% for 2025, 11.81% for 2026, and 9.1% for 2027—is excessive and would negatively impact South Africa’s economy, society, and consumers. Our submission points out that Eskom has relied on significant price increases over the past 15 years and criticises Eskom’s emphasis on revenue through tariffs rather than cost reduction and operational efficiency. OUTA also highlighted outdated economic assessments. 

OUTA’s key recommendations include:

1. Rejecting the proposed increases: OUTA believes the requested increases are too high and argues that these will exacerbate the economic burden, especially since they exceed inflation.

2. Focusing on cost reflectivity and operational efficiency: OUTA urges Nersa to push Eskom towards cost reductions in staffing, maintenance, and energy procurement instead of passing rising costs onto consumers.

3. Improving transparency and accountability: OUTA suggests that Eskom must adopt a clearer, more transparent approach to budgeting for assets and managing operational costs, as well as address issues related to asset valuation and depreciation.

4. Commissioning independent studies: OUTA proposes that Nersa should initiate independent studies on Eskom’s socio-economic impact, staffing levels, remuneration, and regulatory asset valuation to provide a balanced view of Eskom’s costs.

5. Transitioning to clean energy: The submission emphasises the need for Eskom to shift more rapidly toward affordable, sustainable energy sources, and avoid reliance on fossil fuels.

6. Supporting market reforms: OUTA recommends restructuring Eskom and increasing competition within the energy sector to foster diversity and competition in energy supply.

We hope that our detailed, data-driven response will persuade Nersa to scrutinise Eskom’s approach, prioritise South African consumers, and ensure responsible regulation of electricity prices that balances economic stability with sustainable energy practices. 

Read OUTA’s submission to Nersa opposing Eskom’s MYPD6 application here.