This past week South Africans faced their worst nightmare since the start of load shedding in 2007, when the country was thrust into all-day Stage 6 load shedding that, by all accounts, will continue indefinitely – with the inevitability of moving to stage 8 hanging like a sword over citizens’ heads.
This, in the same month that the massive 18.65% increase in electricity tariffs recommended by the National Energy Regulator of South Africa (Nersa) – and vehemently opposed in many corners – was implemented.
The results of a recent survey conducted by Debt Rescue show that the vast majority of South Africans no longer believe they can afford to keep the lights on.
The survey, which polled more than 1000 people, reflects the desperation of people across the country, with an overwhelming 77% saying they believe the cost of electricity has become unaffordable – while a staggering 89% said that it will significantly impact their budgets.
This would, of course, be all well and good, were it not for the fact that all but a fortunate few cannot live without the power that Eskom provides.
With winter drawing ever closer, the nation needs the national electricity producer to power up effectively so that households can keep warm, heat up food, light up homes, and to illuminate shopping malls, and keep the street lights burning.
“South Africans are being asked to pay for corruption and mismanagement at Eskom in the most unfair and unaffordable way,” says Neil Roets, CEO of Debt Rescue.
“40% of those we polled said they were already spending between R500 and R1500 per month to buy electricity, and that they were simply not able to absorb another increase. Taking into account that families who earn the least spend a disproportionate amount of their income on necessities like transport, electricity and food, and still have to contend with the dual sword of crippling blackouts – this is the real national state of disaster,” he warns.
Roets says that 61% of participants polled confirmed that they have invested in energy-efficient appliances; 29% have switched to pre-paid electricity in their bid to reduce their monthly consumption; and 16% have implemented solar conversions.
“Load shedding has had a harrowing impact on the way of life of every South African,” says Roets. “This was unequivocally affirmed by 65% of those polled, who said that load shedding has severely affected every aspect of their lives.
“It is hard to believe that the powers that be are unaware of the dire straits that most of the population currently find themselves in,” he adds.
The latest Consumer Price Index sounds the doomsday bell for 61 million citizens with news that South Africa’s inflation rate increased to 7.1% in March, on the back of steep food prices. Most distressing is that food inflation increased 14% in last the 12 months, taking the annual food inflation rate to a 14-year high – the largest annual increase since March 2009.
Roughly translated, this means that families across the country can expect no relief in the cost of their monthly food baskets in the near future and, as always, it is the most vulnerable households that suffer most.
“Why are we not seeing more decisive action being taken?” asks Roets.
According to Roets, more and more people are turning to credit just to make it through each month.
“My advice to those who fall into this trap is to seek help from a registered debt counsellor who can assist them to manage their financial predicament.
“This has been a very successful solution for thousands of consumers who are plagued by over-indebtedness,” concludes Roets.
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