Johannesburg – City Power has taken a firm stance against the proposed Retail Tariff increases put forth by Eskom.

In a comprehensive report submitted to the National Energy Regulator of South Africa (NERSA), City Power has “strongly opposed” Eskom’s Retail Tariff Plan for the 2025/26 financial year.

City Power Spokesperson Isaac Mangena stated in a statement released on Saturday, January 25, 2025, “Our submission to NERSA highlighted that structural and timing modifications should offer enhanced price certainty and a more gradual pricing evolution.”

Previously, City Power presented a report to NERSA during the public hearing in December 2024, denouncing Eskom’s proposed tariff hikes for the next three years, asserting that increases should not exceed 11% each year.

“Our submission expressed concerns regarding Eskom’s proposed 36.15% increase for 2025/2026, which City Power, alongside other municipalities in Gauteng, deemed excessive,” Mangena pointed out.

“These suggested increases, which could reach an alarming 66% over three years, are seen as unsustainable and detrimental to the economic stability of communities, exacerbating issues like poverty, unemployment, and social unrest, thereby posing a significant threat to both economic stability and the social fabric of the areas we serve.”

City Power also shared concerns about modifications to Eskom’s time-of-use periods.

Currently, Eskom maintains a five-hour peak period each workweek—three hours in the morning and two hours in the evening, with different start times for summer and winter.

Eskom’s proposal includes replacing two hours of “off-peak” time on Sundays with two hours of standard charging periods.

Mangena commented, “If approved, the changes to Sunday energy charges will certainly lead to increased revenue; however, Eskom has not provided clarity on how it intends to achieve revenue neutrality.”

He further noted that Eskom’s application is lacking the essential data to support a shift in the load profile from mornings to evenings.

“City Power urges NERSA to meticulously evaluate our recommendations and strive for a tariff increase that is fair, manageable, and reflective of the economic realities faced by many customers still recovering from the impacts of load-shedding,” Mangena remarked.

“The proposed Retail Tariff Plan should aim to satisfy Eskom’s financial needs while also protecting customer interests.”