Eskom tariff hike has a denting impact on low-income households

Impact of low-income households 1/3
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CAPE TOWN - Eskom's new residential electricity tariffs were hiked up to 12.7 percent for direct customers.

Meanwhile, municipal bulk purchase tariffs will rise by 11.3 % from 1 July.

There have been concerns about how the increases will affect low-income households.

READ | SA government worried about impact of US tariffs

Energy expert Dr Patrick Narbel says most residential users are on the home power tariffs.

This sees residents digging deep into their pockets.

"This tariff has a fixed fee, which has risen by almost 90% and has a variable fee that used to be split for the lower 600 units you  consume in a month and above that at a higher price."

"Because that is gone. So that means if you use 600 units or less, your tariff will increase by approximately 20%," he said.

He says if you add the fixed fee increase together with the variable fee, it will result in a steep hike.

Noting these hikes Narbel says the country will be subject to different tariffs.

"If you have an alternative energy source, you will be able to reduce how much you spend on electricity with Eskom a bit. But this will rely on new managing of the system," he said. 

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