Eskom tariff hike could create an ‘izinyoka pandemic’, warns Tshwane mayor

City of Tshwane mayor Randall Williams has warned that Eskom’s increased electricity tariffs could lead to a possible escalation in illegal connections.

Eskom has welcomed the latest electricity tariff hike approved by the National Energy Regulator of South Africa (Nersa).

On Thursday, Nersa announced that it had greenlit an 18.65% electricity tariff increase for Eskom in the 2023/2024 financial year.

Williams said the increase for the 2023/24 financial year, which will kick in this April, will become unsustainable for residents with lower incomes and will ultimately result in revenue losses for the City and Eskom.

READ MORE: Massive electricity price hikes on the cards for SA

“While for many businesses, electricity is a major production cost, especially within the manufacturing and industrial hubs of Tshwane. An increase of this level will significantly raise the cost of doing business in Tshwane.

“Both of these combined scenarios will lead to a massive loss of revenue for the City and job losses for our residents,” said Williams in a statement.

Opposed to Eskom’s increases

He also said that the city has always been opposed to Eskom‘s price increases because residents cannot afford them, especially with indefinite ongoing stage 6 load shedding.

Williams highlighted that the price increase will have a detrimental effect on Tshwane residents and businesses, and the financial sustainability of the City.

“The City believes that Eskom should be limited to single digit increases. This will incentivise investment and stimulate growth that is required by our economy to tackle unemployment and poverty, and to ensure that the City is positioned to provide sustainable service delivery to all Tshwane residents.”

Ramaphosa ‘concerned’

Meanwhile, Ramaphosa was concerned about the ever-increasing cost of living, Presidency spokesperson Vincent Magwenya said briefing the media on Thursday.

The president’s hands “were tied” when it came to asking South Africans to pay even more for electricity as Eskom battles to keep the lights on, Magwenya said.

“President Ramaphosa deeply regrets the current energy situation which has placed the country into stage 6 load shedding. The President acknowledges the frustration of households, parents and learners who have commenced the school calendar year facing power shortages.”

“The devastation to small businesses and the adverse impact to the economy remains severe for South Africa’s recovering economy,” Magwenya said.

NOW READ: ‘My hands are tied’ says Ramaphosa on electricity price hike

Compiled by: Siphumelele Khumalo