Electricity tariff increase ‘an official sanctioned daylight robbery against consumers’

The decision by the National Energy Regulator of South Africa (Nersa) to increase electricity tariffs by 18.65% has angered both South Africans and political parties.

Democratic Alliance (DA) shadow minister of public enterprises Ghaleb Cachalia, who labelled the increase as “an official sanctioned daylight robbery against consumers”, called on South Africans to stand up and say “enough is enough”.

DA leader John Steenhuisen has also written to President Cyril Ramaphosa, requesting an urgent meeting about Eskom and the growing power crisis.

“This tariff increase is now pouring fuel on the fire and the DA believes that this can’t go on any longer. The Party will explore the option of mass action against the incapable ANC-led government,” said Cachalia in a statement.

“Just as the ANC government has failed to cushion South Africans from the high cost of living, Nersa made the ill-considered decision to allow Eskom to essentially demand more money from consumers over a product they cannot deliver. In the circumstances, these tariffs are unconscionable.”

READ MORE: Nersa approves an 18.65% electricity tariff increase for Eskom

Eskom must fix its operational challenges

ActionSA leader Herman Mashaba called on Eskom to fix its operational challenges and introduce new generation capacity.

“A feasible solution has to be pursued because the South African ratepayer cannot continue to pay for historical and persistent mismanagement of our power utility,” said Mashaba.

“The running of Eskom needs to be depoliticised and the engagement of Independent Power Producers needs to continue with a sense of urgency.”

This is peak ‘delela’ on businesses

Build One South Africa leader Mmusi Maimane said Eskom’s electricity tariff increase had reached the highest level of disrespect towards families and businesses.

“We are paying more and more for electricity while the government delivers less and less. The most frustrating thing is that the ministers do not feel the pain and they can go drink champagne in Davos and then they are here we pay for their generators.”

Eskom is overcharging us. This is peak delela on families and on businesses.

— Mmusi Maimane (@MmusiMaimane) January 12, 2023

GOOD party secretary-general Brett Herron said the electricity tariff increase would be a very bitter pill to swallow because Eskom requires more revenue to cover its operating costs and debt.

“For consumers – residential and business – it’s a triple whammy. The inability of Eskom to provide a continuous electricity supply has serious economic consequences and now we must pay more for what little we get. Then there is still the municipal mark-up on electricity tariffs. Municipalities are over reliant on profit-making from electricity sales to balance their budgets.

ALSO READ: Eskom, Nersa settlement may cost consumers dearly

“Now is the time for municipalities to reduce their operating costs, cutting excess and waste, and their reliance on profit making from electricity sales. Electricity is a basic service which should not be priced out of reach for households.”

According to Herron, the longer it takes to stabilise Eskom, the longer power cuts will continue to cripple the economy and efforts to reduce poverty and inequality.

Debt write-off

Meanwhile, the Freedom Front Plus has slammed considerations to write off the Soweto electricity debt.

“Such actions reinforce the culture of non-payment for electricity and directly contribute to exorbitant hikes in the power price, like the 18.65% that Nersa announced earlier today.”

The FF Plus said the electricity tariff increase was “out of touch” with economic realities in the country.

“It will have the greatest impact on the agricultural sector which is, like the rest of the country’s business sector, already struggling to survive due to load shedding.

“The ANC paid almost no attention to the poor living in townships and informal settlements over the past 30 years.”

ALSO READ: Eskom’s move to Mantashe’s department ‘like rearranging deck chairs on Titanic’

Compiled by Vhahangwele Nemakonde