Electricity increases threaten the cost of food basket in SA

For a second month, the household food basket has decreased across SA, but July’s food basket softened by a measly 62c. 

Electricity tariffs were the concerning new household expense which could take away much-needed funds for food.

Sowetan's sister publication, The Dispatch, previously reported that from July prepaid customers would pay a standard monthly “cost of supply” fee of about R370, compared with the R660 charged to postpaid domestic customers.

Thousands of ratepayers across East London signed petitions saying the charges were unaffordable and introduced without proper consultation.

According to the Household Affordability Index compiled by the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD), food price data from across SA shows that the cost of the average household food basket decreased by 62c compared with June’s prices.

July’s basket was R5,252.15.

The national year-on-year difference shows an increase of R170.21 from R5,081.94 in July 2023. 

We visited three leading retail chains in East London and compared the average price of eight core food items in July with June’s prices:

• 1kg of potatoes increased by 67c to R21.66;
• 750ml of sunflower oil decreased by R1.34 to R34.32;
• A dozen large eggs increased by 67c to R43.98;
• A chicken tray decreased by R1.67 to R59.99;
• A loaf of brown bread remained the same at R11.32;
• 1-litre cow’s milk remained the same at R18.66;
• 1kg of butternut increased by 67c to R17.66; and
• 1kg of maize meal increased by 33c to R16.66.

We also compared average prices in the metro year-on-year with 2023’s June food basket. 

The most notable price differences were: 

• A chicken tray decreased by R19.67 from R79.66; and
• A dozen eggs increased by R7 from R36.98.

The PMBEJD noted with concern how the 12.7% Eskom increase and the additional municipal levies would leave consumers with less money for food. 

“For most South Africans, electricity is unaffordable.”

It explained how the baseline price per kilowatt hour (kWh) and percentage increase levied was a chaotic system with “thousands of different tariff scales applied across the country”.

“While the overall annual Eskom hikes are known and regulated by Nersa (National Energy Regulator of SA), at the local municipal level, where additional charges are included (unilaterally), and municipalities employ both credit meters and prepaid meters – managed by an assortment of vendors – the actual price of electricity which households must pay not only at a local level, but even from a national optic, is largely opaque, not sufficiently regulated and messy.” 

The exact prices of household electricity could only be determined through careful tracking, the PMBEJD said and the baseline price of electricity for households at a municipal level, the annual Eskom levy increase and additional charges by local authorities “far exceeded” the ability of households to pay for them.

“All SA staple food must be cooked for it to be edible (maize meal, rice, samp, potatoes, flour).  Low-income families cannot choose between spending the little money they have on electricity or on food – money must be found to pay for both.”

Based on figures from Pietermaritzburg for electricity and transport costs, plus the average cost of a minimum nutritional basket for a family of four – workers on the national minimum wage (NMW) at R27,58 an hour and R220,64 for an eight-hour day – would spend 56.8% of their income on electricity and transport. 

“Dispersed in a worker’s family of four people, the NMW is R1,268.68 per person – this is below the upper-bound poverty line of R1,558 per person per month.

“In July 2024, PMBEJD calculates that workers’ families will underspend on food by a minimum of 40.3%. In this scenario there is no possibility of a worker being able to afford enough nutritious food for their family.” –  DispatchLIVE