If Eskom’s proposed 36% price hike is approved, this that can land South Africa among the top 20 countries with the highest electricity tariffs in the world.

As of March this year, South Africa ranked 50th by GlobalPetrolPrices.com, with electricity costing R3.29 per kWh. A 12.74% increase in April moved us up to 42nd place, with an average price of R3.71. With the proposed 36.15% hike, South Africans may soon pay R5.05 per kWh, potentially placing us 18th globally.

For comparison, Bermuda holds the top spot, charging R7.90 per kWh due to its reliance on costly fossil fuels. Meanwhile, countries like Italy, Ireland, and Switzerland also face high electricity costs due to taxes and distribution expenses. On the flip side, countries like Iran, Ethiopia, and Sudan enjoy some of the cheapest rates, thanks to government subsidies.

Eskom’s price hike is raising concerns, as critics argue that this approach may not address the real issue—inefficiencies and financial mismanagement at the utility. While Eskom attributes the hike to rising costs for coal, diesel, and maintenance, experts believe a more sustainable financial model is needed.

What Should Accountants Do?

The hike in electricity prices affects everyone, but some clients are be more at risk than others. With that in mind exploring better cost-saving measures and long-term sustainability options such as investing in renewable energy sources, like solar or wind, could help businesses reduce their reliance on grid electricity and avoid escalating tariffs. Recommending energy-efficient practices or equipment upgrades can further cut costs. Accountants play a key role in guiding clients toward these investments, as they can offer insights into financing, tax incentives, and the potential long-term savings from sustainable energy solutions.