South Africa electricity inflation exceeds 100% since 2020

Electricity inflation in South Africa has reached 100.5% since January 2020, significantly outpacing general consumer price inflation, which rose by approximately 36% during the same period. According to a Competition Commission Cost of Living Report, the rising costs of essential services like electricity and water—which has seen 85% inflation—are heavily impacting the purchasing power of low-income households.

In a related development, the power utility Eskom is seeking approval from the National Energy Regulator of South Africa (NERSA) for an average electricity tariff increase of 8.83% for the 2027/28 financial year. NERSA has invited stakeholders to provide feedback on the proposed pricing structure to ensure transparency and prevent issues such as double counting or improper service charges.

The Commission noted that persistent electricity price hikes are linked to structural challenges, including aging infrastructure and rising maintenance and operating costs. These increases also impact the broader economy by raising operating expenses for businesses, potentially leading to higher prices for goods and services.