Minister in the Presidency Khumbudzo Ntshavheni reports that the Cabinet committee set up to consider interventions to moderate fuel price increases is likely to turn its attention to electricity tariffs amid growing fears of another steep hike in 2025.

Responding to questions posed during a post-Cabinet briefing, Ntshavheni said Cabinet was aware of growing anxiety over impending applications to the regulator that could, if approved, result in electricity increases of between 36% and 44% next year.

“In this current environment it is not ideal to have exorbitant tariff [increases],” she said, confirming that the Cabinet committee had been given a brief to address South Africa’s high cost of living.

Ahead of the May elections, President Cyril Ramaphosa indicated that government was investigating ways to cushion South Africans from the effects of rising food and fuel prices, including through making changes to the Basic Fuel Price formula.

In his Opening of Parliament address, he then confirmed that the Government of National Unity had agreed that tackling the high cost of living would be one of its key priorities, alongside efforts to grow the economy, increase job creation and reduce poverty.

Ntshavheni said that the Cabinet committee would seek to make recommendations on selected cost drivers individually and that it would, thus, finalise its work on fuel pricing before turning its attention to another area.

“I’m confident that when we are done with the focus on fuel, we will then also move to focus on electricity.”

Her statement followed the release of the latest consumer price inflation print indicating that inflation had moderated to 4.6% in July, partly because of slowing food price inflation.

It also coincided with moves by some municipalities, opposition political parties and civil society organisation to resist any major electricity tariff hike, including a signature campaign launched by the Democratic Alliance.

Although Eskom and the National Transmission Company South Africa (NTCSA) are yet to make their formal submissions to the National Energy Regulator of South Africa (Nersa), it has been reported that they will be seeking allowable revenue of R446-billion for 2025/26, which would translate to a 36% hike for direct customers.

Electricity and Energy Minister Dr Kgosientsho Ramokgopa has also expressed his unease with the impending Eskom submission, arguing that ongoing steep increases were not only unaffordable for poor households, but were also placing strain on the middle class and business.

While stressing Nersa’s independence, Ramokgopa indicated that South Africa’s electricity pricing policy should be reviewed and an alternative found to both setting tariffs and subsidising low-income households.

For its part, Nersa has indicated that no final submissions have been made by Eskom and the NTCSA, but that these will be published on its website once they are received and public hearings will be held thereafter.