Eskom’s 9.6% tariff hike a huge blow for struggling citizens, say EFF and DA

The EFF and DA say the decision by the National Energy Regulator of South Africa (Nersa) to grant Eskom a 9.61% electricity tariff hike will be a huge blow for poor and struggling South Africans.

Eskom tariff hike

Nersa on Thursday granted Eskom a 9.61% electricity tariff hike for the 2022/2023 financial year, which is set to take effect from 1 April this year.

This was despite the power utility asking for a tariff increase of 20.5%.

The EFF has rejected Nersa’s decision saying the increase is anti-poor. The Red Berets said in the context of South Africa’s rising levels of unemployment, sluggish economic growth and increases to the cost of living – an increase in the cost of electricity is a “cruel addition to the misery of the poor”.

“The increase, which is lower than the ridiculous request by Eskom which was 20.5%, is by no means a reprieve, and means that low-income, black households will struggle to make ends meet and small-business which are still reeling from the Covid-19 pandemic will suffer,” said EFF national spokesperson Sinawo Tambo in a statement.

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The EFF claims Eskom CEO André de Ruyter has no believable plan to steer Eskom on the course of recovery. The party said the electricity hike came in a context where the nation is still subjected to rolling blackouts and insecurity around the supply of power.

The EFF also blamed the presence of Independent Power Producers (IPPs) for the parastatal’s financial woes.

“We have long said that the privatization of energy generation and distribution will come with an increase in the costs of electricity, because the private sector’s sole obligation is to accumulate profit for itself.

“This means that it is willing to provide electricity to the wealthy few at exorbitant prices, without any concern for the developmental objectives of South Africa, so long as profit targets are met.”

‘Skyrocketing cost of living’

The DA said while it was very pleased that Nersa rejected Eskom’s proposed electricity tariff increase, the 9.61% tariff hike would still be a blow to South Africans who are already crippled under the skyrocketing cost of living.

DA MP and spokesperson on mineral resources and energy, Kevin Mileham, said citizens were already bombarded by high fuel prices, food and transport cost increases, and consumer price increases.

“The DA has spearheaded a national campaign to break the monopoly that Eskom enjoys and the back-breaking year-on-year tariff increases that residents have to endure.

“The DA will continue to fight for all South Africans, to ensure an affordable and reliable electricity supply, not only for the man on the street but also emerging businesses that need a stable and cost-effective supply,” Mileham said in a statement.

IPPs

Mileham said the ANC government and Eskom were the single biggest risks to the South African economy, due to their inability to maintain and grow generation capacity.

And unlike the EFF, the DA said government should put Eskom’s money to better use by opening up the energy sector to IPPs so that they can play a much bigger role at national, provincial and local levels.

“Much of Eskom’s losses can be traced back to mismanagement and rampant corruption under past leadership, and the burden is being passed on to consumers, who are bearing the brunt of Eskom’s failure, while the inept ANC government watch from the sidelines.”

Compiled by Thapelo Lekabe

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