In 2015, 2017, 2019 and 2022 we published infographics showing Eskom's annual tariff increases since 1988 compared to inflation.

Eskom tariffs jumped 18.7% in 2023 and another 12.7% in 2024. Over the same period, CPI (Consumer Price Index) rose just 5.9% and 4.9%.

The graph below shows Eskom tariffs from 1988 to 2024, plotted against CPI over the same period. It also includes projections to 2026, based on inflation forecasts and Eskom's planned applications to NERSA (assuming NERSA grants half their requested 36.15% increase for 2025).

Note: The graph shows overall average increases. Actual increases differ by consumer type (residential, commercial, industrial) and vary between municipalities.

What the graph reveals:

From 1988 to the 2008 electricity crisis, tariff increases lagged behind inflation. This was partly government policy to keep electricity affordable for poor communities, but also because Eskom had surplus capacity in the 1990s and didn't invest in new generation in the 2000s.

Between 1988 and 2007, electricity tariffs rose 223% while inflation climbed 335%.

From 2008 onward, there's a sharp inflection point. Between 2007 and 2024, electricity tariffs surged 937% while inflation rose just 155%. In real terms, electricity became six times more expensive relative to inflation in 16 years.

Eskom plans to apply for another 36.15% increase in 2025, so the dramatic price escalation looks set to continue.

Sources:

Eskom tariffs and charges. Website: https://www.eskom.co.za/CustomerCare/TariffsAndCharges/Pages/Tariffs_And_Charges.aspx. Last accessed: 2024/08/10.

Stats SA. CPI History. Website: http://www.statssa.gov.za/publications/P0141/CPIHistory.pdf. Last accessed: 2019/10/01.

Bureau for Economic Research. Inflation Expectations – History (2021). Website: https://www.ber.ac.za/BER%20Documents/Inflation-Expectations/?doctypeid=1065. Last accessed: 2021/07/30.

South Africa Inflation Expectations. Website: https://www.resbank.co.za/content/dam/sarb/publications/statements/monetary-policy-statements/2024/january/Statement%20of%20the%20Monetary%20Policy%20Committee%20January%202024.pdf. Last accessed: 2024/08/10.