Johannesburg - Ekurhuleni Executive Mayor Tania Campbell has added her voice to the growing disappointment at the 18.65% electricity tariff increase approved by the National Energy Regulator of South Africa (Nersa).
She said while this increase may be less than the 32% initially requested by Eskom, the already financially stretched residents of Ekurhuleni were going to bear the brunt of this exorbitant increase.
“Residents are already plagued by daily load shedding, where power is off anywhere between 8 and 12 hours in a 24-hour cycle. This has increased the number of breakdowns of municipal-owned electrical equipment and has created an environment conducive to criminal activities such as theft and vandalism,” Campbell said.
The mayor said it was atrocious that residents were being asked to pay a lot more only to get a lot less.
“This increase, and any further approved electricity tariff increases, is tantamount to the endorsement of poor management and incompetence at the failing power utility.
“We are vehemently opposed to this increase and any future tariff increases. I call on civil society, business and other municipalities to oppose this increase,” she said.
Political movement Rise Mzansi said load shedding was causing severe damage to the economy, and now whatever little electricity was available would be virtually unaffordable for millions of people. It is particularly damaging to small and medium-sized businesses that do not have the capital to install their own generation capacity.
“Even when they do, this cost is passed on to already struggling South Africans, millions of whom are battling to make ends meet and feed themselves or their families,” said the movement.
It said it was also futile to expect President Cyril Ramaphosa to do anything.
“He was infamously the head of its so-called war room, which only saw more corruption and destruction. It is not clear what he or any of his ministers can conjure up now. South Africans understand that they are on their own, and the ANC government is simply not able to develop solutions to any of South Africa’s pressing problems,” added the movement.
The Federation of Unions of South Africa (FEDUSA) said it was enraged by the decision of Nersa to grant Eskom tariff increases of 18.65% and 12.74% over the next two years.
The trade union federation lamented the decision, saying consumers were buying electricity that they never got to use fully, yet the service remained expensive, problematic and unreliable.
“In the private sectors the levels of load shedding are killing all efforts to create and sustain jobs, short time and company closures are common. The increase in tariffs more than three times the current inflation rate will force companies to save money elsewhere, and jobs will be lost,” it pointed out.
The Energy Regulator said it made its decision after conducting the due regulatory process, which included publishing Eskom’s revenue application and inviting written comments from stakeholders as well as conducting public hearings to solicit comments from interested and affected stakeholders.
“As a result, Nersa received approximately 2000 written comments from stakeholders, who raised concerns about affordability.
It is important to note that Eskom's revenue application for the 2023/24 and 2024/25 financial years was considered against various challenges that are affecting the economy. Accordingly, the Energy Regulator’s decision provides a balance between the sustainability of Eskom and the economic well-being of the consumers and the economy,“ said the regulator.
Meanwhile, the regulator had to fight off social media allegations that Thembani Bukula, the Nersa chairperson, had a conflict of interest and could stand to benefit from the new tariff hike.
Social media users allege that he is the CEO of PowerX South Africa, the first private energy trading company, and the non-executive director of Mahube Infrastructure, which has five independent power producer contracts, two wind farms and three solar farms.
The regulator said he was not conflicted, and he resigned from his position as non-executive director of Mahube Infrastructure when he was appointed as Nersa chairperson.
“The law requires that upon appointment every part-time regulator member (board member) must disclose to the minister of mineral resources and energy his (or her) pecuniary interest in any company (firm or association) engaged in the electricity, piped-gas and petroleum pipeline industries. Mr Bukula, as the part-time regulator member, has duly complied in this regard and did declare his interests before taking over his position,” said the regulator.
The Star