City of Joburg objects to Eskom’s proposed 20.5% tariff hike

City of Joburg objects to Eskom’s proposed 20.5% tariff hike

The City of Johannesburg has objected to Eskom’s proposed 20.5% tariff hike for City Power.

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The City’s Mayor Mpho Phalatse made a presentation at the National Energy Regulator of South Africa (NERSA)’s public hearing on Eskom.

The hearing was hosted in Midrand on Friday.

Phalatse says the proposed tariff is too high for the city’s residents.

“City Power has reviewed Eskom’s submission on tariff changes and hereby wishes to express its objection pertaining to the proposed tariff hike of 20,5. It is important to note that the buying price is proportional to the price that City Power sells electricity to its customers,” she said.

“The proposed tariff hike, which is far higher than the current inflation rate, would have a devastating impact on the citizens of Johannesburg already impacted by the COVID 19 pandemic and the economy that is ailing and on a recovery path, the proposed tariff hike would erode business confidence and disrupt economic recovery,” says Phalatse.

The mayor further told the hearing that the carbon tax of R 2 7 billion should not be allowed.

She says if the proposed application of a tariff hike of 20 5 is approved, City Power would have little room but to pass through the costs to the customers.

“This would further deepen the triple challenge of inequality, poverty, and unemployment within the City of Johannesburg. The proposed tariff hike by Eskom would put a halt to business and economic recovery and would negatively impact job creation and the City’s revenue base.

“Therefore, we request NERSA not to grant Eskom the proposed tariff hike of 20 5 for the Financial year 2022 23 and Eskom should rather be encouraged to introspect and seek alternative mechanisms to improve its efficiencies and reduce costs,” she says.


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