Looming electricity tariff hike, will be a blow to households says NPO

Next month's electricity tariff hike might impact the monthly food basket. 

That's according to the Pietermaritzburg Economic Justice and Dignity Group - which has been commenting on the 12.7% increase that's coming into effect on the 1st of April.

It was granted to Eskom by NERSA last year.

The Pietermaritzburg Economic Justice and Dignity Group's Mervyn Abrahams says it will blow household incomes. "It is an essential and so people will continue to pay for VAT and then they don't have extra savings. 

READ: Consumers in 'need of protection' against rocketing food prices

'They will now dip into food money to pay for it and therein lies part of our household food insecurity problems. It's not just that food prices are going up, it is the essential expenses going up." 

He says there will likely be an extra cost once the municipal surcharge is added. "Municipalities often add on a percentage because they earn their main source income from selling water and electricity. So it's likely that, that might be much higher in July when it gets implemented in eThekwini." 

According to the Group's index, the average Pietermaritzburg family currently pays just over R900 (R906,92) for electricity per month.