An Eskom sign at the entrance to Eskom's Megawatt Park in Sunninghill, 25 August 2020. Picture: Michel Bega
Businesses and consumers were left reeling by the decision taken by the National Energy Regulator of South Africa (Nersa) on Thursday to grant Eskom whopping tariff increases of 18% and 12% over the next two years, despite the power utility leaving the country in tatters following the latest reintroduction of stage 6 load shedding.
The decision, effective from 1 April, will have far-reaching consequences for the public. Already battling to make ends meet due to the rising cost of food and fuel, and the increase of interest rates, just where South Africans will find the money to pay for these increases remains to be seen.
We’re already fed up with the erratic supply of electricity. Now, you pay more money for less power. It just doesn’t make sense. While Nersa approved a lower tariff hike than the proposed 32%, many people feel they have lost the ability to stand up to Eskom.
ALSO READ: Eskom: Thanks Nersa, too bad, so sad for the rest of you
Like President Cyril Ramaphosa, Nersa insist their hands are tied and that Eskom needs an increase to help them cover their debt. It’s just not good enough. No-one can afford a tariff hike of 18%, followed by 12% the following year – far higher than inflation.
South Africans are fuming, with some even going as far as calling for protests against the decision.
Cape Town Mayor Geordin Hill-Lewis didn’t mince his words, saying: “South Africans are being asked to pay for corruption and mismanagement at Eskom.”
“Eskom has alternative ways to raise funds: by reducing their bloated payroll, by cutting suppliers who are overcharging, especially for substandard coal, and by ending corruption.”
Eskom’s response to the Nersa decision? Sorry South Africa, but thank you. Load shedding has already decimated many businesses. Jobs are few and far between.
RELATED: ‘Eskom is essentially making consumers pay for their own inefficiencies’
Some analysts have suggested people will now have to choose between power and food. How low we have plummeted as a country…
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