Gauteng municipalities have united in rejecting Eskom’s proposed 36,15% electricity tariff increase for the 2025/26 financial year, calling it “excessive and unsustainable”. They warn the steep hikes could exacerbate economic hardships and spark social unrest.

The National Energy Regulator of South Africa (NERSA) recently published Eskom’s Multi-Year Price Determination (MYPD) 6 revenue application for 2026-2028. Eskom is seeking to generate R537 billion in 2028. If approved, the application will result in a cumulative 66% increase in tariffs over three years: 36,15% in 2025/26, followed by 11,81% in 2026/27 and 9,10% in 2027/28.

“The recent implementation of a 12,75% tariff increase has already placed immense financial strain on our residents, pushing many to the brink of economic hardship. The potential for a further increase of this magnitude is not only unsustainable but also morally unacceptable. Such a drastic rise in electricity tariffs will exacerbate the already precarious situation faced by our residents, leading to increased poverty, unemployment and social unrest,” the municipalities said in a joint statement.

Businesses in energy-intensive sectors, already reeling from the effects of persistent load shedding, would also be disproportionately affected. “Eskom has failed to account for the economic impact of load shedding on our municipalities yet expects residents – who are still recovering from power outages – to bear the burden of exorbitant increases,” the statement said.

The municipalities – including City Power (Johannesburg), City of Ekurhuleni, City of Tshwane, Sedibeng, Emfuleni, Lesedi, Midvaal, West Rand, Merafong City, Mogale City and Rand West City – have committed to formally opposing the tariff hike through written submissions to NERSA.

The regulator’s consultation process is underway with public hearings scheduled across provinces concluding in Gauteng this week. NERSA is expected to announce its decision on December 20.