ETHEKWINI Mayor, James Nxumalo has expressed his concerns over the proposed hefty hike in electricity tariff by Eskom.
In a media statement this morning, Nxumalo said the city had noted a submission from Eskom calling for a review of electricity tariff increases in addition to the 14.25 per cent previously agreed to by energy regulator NERSA. Nxumalo said if the request for the additional tariff increase was granted, it will push the total electricity increases up to 25.3 per cent.
“”We do not support the proposed additional increase as it could have far reaching consequences and would negate our efforts to fast-track development and service delivery. We believe the proposal could leave the poorest of the poor worse off,” he said, adding that it would also have a negative consequence on the city’s efforts to attract investments to Durban.
“It could also lead to an increase in the theft of electricity as it would become a very expensive commodity which could be out of reach for the poor, and negate our efforts to ensure universal supply of power to all residents, including those in informal settlements, ” he said
“While we understand the situation that is currently faced by Eskom and are working together with the utility to maintain the power grid, we do not believe that such a hefty increase would be the correct solution. As part of organised local government we will work together with the South African Local Government Association (Salga) to address the matter through appropriate intergovernmental platforms. We have organised a round table discussion with stakeholders, including business, to come up with joint strategies on how to effectively deal with the energy challenges that we are facing. This is part of the business continuity strategy that was recently adopted by Council to ensure that load-shedding does not have adverse effects on business operations and our ability to deliver services to residents. The round table discussions will be held at Moses Mabhida stadium on Friday, 27 March 2003,” he said.
