NCCI rejects Nersa’s decision to approve Eskom application to raise electricity prices
NCCI chairperson said Nersa’s decision will have a negative impact to the poor and small businesses that were already struggling because of load-shedding.
The Northrand Chamber of Commerce and Industry (NCCI) has criticised the National Energy Regulator of South Africa’s (Nersa) decision to approve Eskom’s application to hike electricity prices.
This was after Nersa agreed to an 18.65% electricity price hike from April this year.
The embattled power utility had applied for a 32% price hike for the next financial year.
The chairperson of NCCI Richard Ntjana said Nersa’s decision would negatively impact the poor, and small businesses that were already struggling because of load-shedding.
“Eskom is failing to deliver on its primary mandate which is to supply electricity to South African consumers at large with reliable electricity. Nersa’s decision is so unfortunate and came at a time when the country is experiencing Stage 6 load-shedding.
“This will lead to food prices and petrol prices being unaffordable to many South Africans. The costs of running a business are very high with rolling blackouts as owners are compelled to buy more diesel to keep the lights on in their businesses. NCCI totally rejects this because costs of living are going to go higher and higher and unfortunately small businesses and poor people are going to suffer the most.”
He added that the electricity price hike would lead to more illegal connections which would cost Eskom money at the end of the day.
“The poorest of poor who already are involved in the illegal connection of electricity mainly in our townships will have a reason to strengthen their illegal work. More and more people will resort to illegal connections because of inflated electricity prices.”
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