DA, EFF slam granting of 19% tariff hike to Eskom
The DA and the EFF have both slammed the decision by the National Energy Regulator of South Africa (Nersa) to grant Eskom a tariff increase of 18.65% from April 1.
The energy regulator announced its decision on Thursday following Eskom's earlier application for a 32% tariff hike.
The increase will be effective for the 2023/24 financial year, while another 13% increase will be instituted at the start of the 2024/25 financial year.
The announcement has been met with fury from various quarters, with fears that the massive hike could push consumers and businesses over the edge.
The DA's Ghaleb Cachalia called on all South Africans to reject Nersa's decision.
The party's leader John Steenhuisen has already written to President Cyril Rampahosa requesting an urgent meeting about Eskom and the growing power crisis.
"This tariff increase is now pouring fuel on the fire and the DA believes that this can’t go on any longer. The Party will explore the option of mass action against the incapable ANC-led government,” says Cachalia.
“Instead of acknowledging that overburdened consumers are currently carrying the dead weight of a collapsing Eskom monopoly, Nersa instead chose to protect itself from further litigation by Eskom and agreed to grant this exorbitant electricity price increase.”
The EFF's Leigh-Ann Mathys believes the regulator has failed in its mandate to uphold fair energy prices.
"Given the fact that over 18 million South Africans are already living in extreme poverty, and the country is in the midst of rolling blackouts, the National Energy Regulator has failed in its mandate to uphold fair energy prices.
“The National Energy Regulator, over the past 10 years, has already allowed a 753% increase in electricity cost, so there is nothing fair about any increase in power costs, given the material conditions in our country.”
Meanwhile, NERSA CEO Nomalanga Sithole has defended the regulator's decision, saying all factors affecting South Africans have been considered, including continuous power cuts.
"It is important to indicate that the decision has been taken against the backdrop of difficult conditions, such as slow economic growth, job losses, load shedding and high costs of living. These factors have been balanced against the sustainability of Eskom, the regulatory certainty, and compliance with the electricity regulation act.
“The decision taken by the energy regulator has been checked against the rationality and legality principles, and the energy regulator is satisfied that it has performed its function and taken a decision in compliant with the electricity act.”
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