TLU SA strongly opposes Eskom’s plan to implement an unjust 44% increase in electricity tariffs, proposed for April 2025.
This proposed increase is an unacceptable burden that consumers should not have to bear as a result of Eskom’s long-standing inefficiency and mismanagement. Before any tariff hike can be considered, Eskom must first conduct a thorough review of its structure, particularly regarding staffing requirements and the effectiveness of personnel at all levels.
The price South Africa pays for cadre deployment, which has largely crippled Eskom and other semi-state institutions, is one of the main reasons for this inefficiency. “It is high time that Eskom gets its house in order rather than relying on consumers to finance its failures,” says Bennie van Zyl, General Manager of TLU SA.
South Africa’s economy is currently showing slight signs of recovery, mainly due to falling fuel prices and the absence of load shedding, thanks to the private sector. However, a drastic increase in electricity tariffs will severely affect business profitability and quickly undo the economic improvements.
The agricultural sector, already under immense pressure due to climate challenges and poor infrastructure, will be further strained. An increase of this magnitude will seriously threaten sustainable food production.
The impact on the cost of food and agricultural products will be astronomical. Consumers will not only face higher electricity bills but also significantly higher food prices. In a country where poor economic conditions and unemployment already weigh heavily on the public, this increase will hit those least able to afford it the hardest. Can South Africa really bear this burden?
There are also growing allegations that a portion of the cost per litre of imported diesel goes to the ANC. TLU SA has already requested the Minister of Energy and the former Minister of Agriculture to address this issue, but no satisfactory response has been received to date. “We call on Eskom and the government to handle these matters transparently and to declare under oath that no political party benefits financially from diesel imports,” Van Zyl said.
If Eskom proceeds with this proposed increase, it will only force more consumers to seek their own energy solutions, which will ultimately further cripple Eskom. Eskom urgently needs to get its house in order, and consumers cannot continue to pay for failures and mismanagement.
