In an eye-opening interview with Clarence Ford on CapeTalk, Annaline van der Poel, Chief Operating Officer at Debt Rescue, explains the results of their latest survey and the serious toll that the recent 12.7% NERSA-approved electricity tariff hike is taking on South African households.
The conversation explored how rising utility costs are crippling disposable income especially for those already struggling to keep up with basic living expenses.
Debt Rescue conducted a national survey just before the increase came into effect on 1 April 2025.
1. Households Already Under Pressure – Even Before the Hike
The results are alarming:
- Most respondents were already struggling to pay for electricity before the increase.
- Many reported having to cut back on groceries and transport to keep the lights on.
- This is before winter even begins—when electricity usage typically spikes.
2. Prepaid Users Hit the Hardest
Those on prepaid electricity are meticulously tracking each unit of electricity that they use, attempting to stretch every rand as far as possible.
3. New Tariff Structure Penalises Low Consumption
- The fixed fee component has increased by almost 90% in some cases.
- Ironically, consumers are now incentivised to buy more electricity to avoid being penalised with higher tariffs.
4. VAT Threat Looms
Van der Poel also warns of the possible VAT increase, which, while small on paper (0.5%), would have a disproportionate effect on struggling consumers. Since VAT affects nearly all purchases (excluding a few exempt goods), any increase hits every pocket—even those already stretched to the limit.
5. Lack of Relief Measures
Despite government discussions about expanding the VAT-exempt basket, the current list of basic goods is insufficient.
6. What Can Consumers Do?
Debt Rescue’s Annaline Van der Poel’s advice to South Africans is clear:
- Be brutally honest about your spending. Go through 2–3 months of bank statements.
- Cut unnecessary costs — cancel subscriptions, and shop more strategically.
- Use local specials and price comparisons to stretch your grocery budget.
- And if it’s getting too much, consider debt counselling as a legal and protective way to manage financial obligations.
This interview is a sobering reminder that South Africa’s electricity crisis isn’t just about tariffs, it’s about dignity, survival, and the daily decisions millions of families are forced to make just to get by.
Listen to the full interview on CapeTalk to understand the real impact.
