Cape Town mayor Geordin Hill-Lewis rejected the energy regulator’s decision to hike Eskom’s electricity tariff by 18.65% - stating it will force some families to choose between “eating or heating” this coming winter.
The National Energy Regulator of South Africa (Nersa) approved the tariff increase for Eskom customers, effective April 1. It also gave the green light for a 12.74% hike for next year.
Eskom had pushed for a 32% tariff increase, warning that the hike was necessary for the continuation of its operations.
“South Africans are being asked to pay for corruption and mismanagement at Eskom in the most unfair, unaffordable and unjust way,” said Hill-Lewis, adding that “we will continue to oppose Eskom’s unjust price hikes by all available means while accelerating Cape Town’s path away from Eskom reliance.”
He told Weekend Argus, the hike would mean cash-strapped South Africans would have to choose between making sure they’re warm this winter or that their stomachs are full.
Western Cape Premier Alan Winde also said he is “deeply disappointed”.
“This is another blow to already hard-pressed citizens, particularly poor residents in our province who are unable to make alternative arrangements and rely on this essential service,” he said.
GOOD secretary-general, Brett Herron, also lambasted the hike, saying it will be a bitter pill to swallow.
“Especially because Eskom requires more revenue to cover its operating costs and debt but we don’t even have a stable electricity supply,” said Herron.
“For consumers – residential and business – it’s a triple whammy. The inability of Eskom to provide a continuous electricity supply has serious economic consequences and now we must pay more for what little we get. Then there is still the municipal mark-up on electricity tariffs. Municipalities are over reliant on profit-making from electricity sales to balance their budgets.”
Eskom spokesperson Sikonathi Mantshantsha said the power utility would publish a statement on Friday.
Weekend Argus.