South Africa has been facing a national energy crisis for years, and at the center of this problem is Eskom; South Africa’s primary electricity supplier. Eskom was founded in 1923 and since then it has grown to be one of the largest companies in South Africa. At the start, the company thrived with its rapid infrastructural growth and feeling supported by the growing South African economy.
However, during Apartheid, Eskom faced many challenges due to the different discriminatory policies based on race such as those which determined who got access to electricity. These policies have been described as a form of ‘energy racism’ by Luke Sinwell, a South African sociology professor. Electricity was primarily supplied to residential areas with a majority white population, while colored (the terminology for mixed South Africans) and the black-populated regions were neglected. Even though those policies have not been enforced or in action in over thirty years, their impacts can still be felt in the unequal access to energy in South Africa today.
Load shedding is a process where electricity companies will temporarily cut off electricity in certain areas, due to the demand for electricity exceeding the supply. Although this process disrupts people’s daily livelihoods, it particularly affects small business owners, as they struggle to operate without stable access to power. Many have started turning to alternative energy sources, such as solar, however, the initial investments for these alternate energy sources can be expensive and difficult for small businesses to afford.
Research indicates that in South Africa, load shedding disproportionately affects black low-income communities, only furthering the already wide inequality gap. The mismanagement and corruption in Eskom’s operations alongside the government’s refusal to invest in renewable energy has only worsened the electricity shortage, leading to the current downfall of the company.
An article from News24 revealed that in August 2024, Eskom proposed a 36% increase in electricity tariffs for 2026, claiming the company is going through a lot of financial pressure and that this increase is necessary to keep the company operational during South Africa’s challenging economic environment. Although South Africa is currently going through an economic crisis, with inflation rapidly increasing at a rate that wages can not adjust to, many civilians are worried that this increase will only worsen the cost of living crisis many face. Ray Mahlaka, a South African financial journalist reported that municipal customers will face a 44% increase. Even for the average customer, this increase could add an approximately 2,000 rand increase according to a report from MyBroadBand, the largest tech news company in South Africa.
Not only will households struggle with the rising electricity costs, but this proposal could worsen the economic crisis. High tariffs could deter foreign investment, which could stifle economic growth.
While this proposal is still subject to public hearing and approval from the National Energy Regulator of South Africa; the Democratic Alliance, one of South Africa’s largest political parties, has taken a firm stance against the proposal even launching a petition to garner public support against the proposed increase.
Many suggest that the best strategy for the South African government would be to consider restructuring utility management processes and looking into alternate and renewable energy sources so that Eskom does not have such a monopoly over the nation.
Written by Dorine Benedict
