Tshwane rejects Eskom’s proposed 40% tariff increase

Tshwane metro rejects the proposed 40% Eskom electricity tariff increase mooted for April next year.

Tshwane mayor Cilliers Brink said the metro wrote to the National Energy Regulator of South Africa (Nersa) to strongly reject the steep electricity prices.

Nersa will have to decide on the proposed hike based on the Eskom budget for the next financial year.

However organisations such as AfriForum have also been exploring the legal route to prevent such tariff hikes from coming into effect.

Brink said households are already under pressure and the economy has not been growing in part because there hasn’t been electricity availability.

“Households sometimes have to choose between buying food and other household necessities and paying the utility bills.”

Brink said there’s an affordability crisis in this country.

“As the city we have done our best to act against illegal connections, to go after folks who can pay but don’t pay.”

Brink said the proposed tariffs will hit hard on residents who are already struggling.

“If this super inflationary increase is granted by Nersa or anything close to it, that will put our consumers, our households even working men and women under incredible pressure.”

Brink said he will not back down from this fight.

“As Tshwane, we will stand with other mayors and also ask to make a presentation at Nersa to make sure we stop this massive increase in electricity prices.”

The DA has taken to the parliamentary stage in a bid to challenge Nersa’s and Eskom’s decision to raise tariffs in an attempt to recoup lost revenue, an action the DA believes places an unjust burden on consumers.

The DA said this “make-up tariff” stands as a potent symbol of Eskom’s deficient management. It has thrust dire consequences upon the shoulders of the South African people, who now find themselves in the perilous position of having to bear the brunt of an energy provider’s failings.

The metro approved an increase of 12% in electricity tariffs for their clients starting from July 1.

This was announced by the MMC for Finance Jacqui Uys during the council meeting on June 4.

Uys said that Tshwane’s proposed rates and tariffs are the most reasonable compared to other metros.

Metro spokesperson Lindela Mashigo told Rekord that the study required by law, the cost supply study, was done by the metro and submitted to the regulator with the application.

He said the public participation process to discuss the cost of supply study was conducted from November 16 until December 5, 2023, with metro clients.

The consultations comprised 12 physical meetings and four online meetings. The physical meetings were conducted across all seven regions.

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