Electricity and Energy Minister Dr Kgosientsho Ramokgopa has warned that the high cost of electricity is a ticking time bomb that could trigger “unrest” and undermine the government.
He addressed the issue while highlighting that Eskom has successfully kept the lights on uninterrupted for more than 200 days.
The minister stated that he had been briefed by Eskom officials who attended the public hearings regarding the tariff increases, where input was made regarding the pressure faced by vulnerable groups, including the poor and the elderly.
The National Energy Regulator of South Africa (Nersa) said last week that it expected to make a final decision on the tariff increases by the end of January 2025.
It said this was due to the extended public hearing period. The power utility has applied for a proposed 36% tariff increase for the 2025 financial year, 11.8% in the next and 9.10% for 2027/2028.
Ramokgopa expressed concern that the rising costs of water and electricity were driving people deeper into poverty.
He warned that if this situation is not resolved, it could become a national security threat for the country.
“People are going through an exceptionally difficult period. Many of us (in that media briefing) are privileged; we will spend time with our families, open the fridge, and have a choice of what to eat and drink. The majority of the people watching us today do not have that privilege. It’s a real problem, a genuine problem,” he said.
The minister highlighted the plight of pensioners.
“We have pensioners earning R2,190 (pension grant). The cost of electricity for an average low-income household is R1,200. If you take out R1,200 from R2,190, you see that they are diligent payers. They start by paying their electricity accounts, but we have effectively wiped out what the state has given them. On one hand, the state gives social grants and on the other, we take half away.”
He emphasised the need for a solution, noting that many people are facing a “black Christmas” due to the current economic challenges.
The tariffs being discussed could exacerbate an already dire situation, as residents struggle to afford the current charges.
“We are creating a perfect storm that can undermine a legitimate government; it’s a national security problem, an existential problem for the country. It is in our collective interest to resolve this issue. We will resolve this problem,” he asserted.
Minister Ramokgopa also expressed confidence that Eskom is becoming an efficient generator of electricity and would soon be able to meet demands, thereby restoring confidence in the country’s economy.
“We are within touching distance of resolving load shedding but we are not yet out of the woods. It’s important to underline that point so there is a common understanding across the country that even though we are seeing phenomenal performance, we must keep our eyes
on the goal to ensure that we end load shedding and provide sufficient support for the South African economy to grow.”
He stated that based on improvements in electricity supply performance, it is possible to support the country's economy, which could grow by between 2.5% and 3.5%.
“Remember, South Africa’s GDP contracted and once we achieve a sustained period of no load shedding, there will be greater confidence in the South African economy. The ultimate goal is to ensure we support the growth of the South African economy, and to achieve this, we need an energy availability factor of 70%. I did say we are not there yet, but by April 2025, we should get close to the (Energy Availability Factor) EAF of 70%,” he concluded.