Power user vents over another power tariff increase
We (South-Africans) pay more for power (along with many other things) than anyone else in the world, in spite of having the worst power supply
I would just like to relay my frustration at the state of things in this country, particularly the tariff hikes that Eskom keeps implementing, and Nersa (National Energy Regulator South Africa) keeps approving.
We South Africans pay more for power (along with many other things) than anyone else in the world, in spite of having the worst power supply, and giving places like Zimbabwe free power, and “performance” bonuses and parties, costing billions of Rands per annum, for people who are not doing their jobs, and in turn get handsomely rewarded for it.
This year’s 9.4 per cent tariff hike, which Nersa approved, is ridiculous as we already pay too much and keep in mind that Eskom initially asked for 20 per cent!
When this was challenged at the North Gauteng High Court, the court found that it is certainly excessive and even improper, but yet in the same breath seemed to say that the hike will continue. What madness is this?
The funny and sad thing is that they are shooting themselves in the foot and they too are soon going to be bankrupt, because they steal from the coffers and keep putting the onus on the taxpayers and power users, but they will end up like all our other inept state-run entities, such as the Post Office, South African Airways, etc.
People are going off grid and using alternative power sources, such as solar, or just not using electricity, because it has simply become unaffordable, which in turn means that they increase tariffs again.
What a worrying time as a South African.
-Worried about our future.
Eskom had this to say:
“As we await a decision by the National Energy Regulator of South Africa (Nersa) on the way forward regarding the North Gauteng High Court’s judgment, it is important to note that the Court has ruled that the revenue allowed for the 2016/17 tariff will remain in force. In paragraph 122 of the judgment, the Judge said:
“I agree with the applicants that, even if the RCA [Regulatory Clearing Account] increase is set aside, the revenue approved for the 2016/17 tariff will remain in force, as well as the direct tariff to the customers and the tariff to municipalities.”
Eskom is still studying the Court judgment and its implications on our business.
Nersa has indicated that it would announce its position on the matter in due course.”
EMM replied as follows:
Customers directly supplied by Eskom received an increase of 9,4 per cent on April 1, whilst municipalities passed on 7,64 per cent on July 1. The municipal increase is based on the Eskom increase and also feeds into the predicted municipal expenditure and income budgets.Nersa provides annual tariff increase guidelines to municipalities which the City of Ekurhuleni does not exceed.
Administrative processes are governed by legislation and a minimum lead time of about three to four months is required to effect changes to tariffs. Electricity distributors can only effect changes once the Energy Regulator provides new guidelines to municipalities. Once these guidelines are received, the administrative process can begin. These processes are subject to legislation such as the Municipal Finance Management Act.
Tariff corrections will most likely be during the next round of tariff increases. This may possibly result in a lower increase value on April 1 and July 1 respectively. Customers should not expect a monetary refund of electricity. Any possible refund will likely take the form of a lower tariff value in future”, said Themba Gadebe from the Ekurhuleni Metropolitan Municipality.
Nersa did not respond to our requests for comment.
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