City of Joburg reacts to Nersa’s electricity tariff increase

With the national energy regulator, Nersa granting Eskom an electricity hike for three financial years of 9.41 per cent, 8.1 and 5.2 per cent, the City of Joburg has responded.

The hikes are less than what Eskom had initially asked for which was 17.1 for the 2019/20 financial year, 15.4 per cent for  2020/21 and 15.5 per cent for 2021/22.

In a statement, City of Joburg mayor Herman Mashaba said various stakeholders including the City had made representations to Nersa emphasising the concerns that residents and businesses of Johannesburg had about the proposed tariff increase.

“Given the poor state of the national economy, and the massive [alleged] corruption at Eskom itself. The City on behalf of our residents had argued that the proposed tariff increases were simply unacceptable,” Herman Mashaba said in the statement.

While the City of Johannesburg was appreciative of Nersa’s willingness to hear the voice of the residents, businesses and all South Africans at large, it is still the City of Johannesburg’s view that the present increase serves only to reward maladministration and corruption which has gutted Eskom, continued the statement.

The City of Johannesburg said for the poorest members of the country, life was set to become harder for them as a result of the increase. “In addition,  the rise in tariffs will also continue to place struggling businesses under strain, hampering the prospects for economic growth.”

The City of Johannesburg furthermore stated that it hoped that Nersa would do all within its powers to ensure that serious reforms were implemented at Eskom, reforms the City hoped will cut costs and end the [alleged] corruption at Eskom.

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