Consumers are at heightened risk of falling even deeper into debt because of the latest electricity tariff hike by Eskom. As of the 1st of April, the National Energy Regulator of South Africa granted the power utility a 12% increase for Eskom direct users.
In February, inflation rose to 5.6 % year-on-year from 5.3 % in January, nearing the top of the central bank’s preferred range. According to the General Industries Workers Union of South Africa workers will pay more for electricity which they will not be able to use without interruptions due to rolling blackouts.“These cents in differentials and changes may seem like small change to those who enjoy the financial stability, but are worth much in the life of a worker, half of whom are earning a minimum wage of R3 800 and as much as 75% subsidizing by less than R6 000 a month.