Eskom’s 32% tariff increase ‘will push people further into poverty’
Updated | By Makhosazane Twala
The City of Joburg’s MMC for
Environment and Infrastructure Michael Sun has urged energy regulator Nersa to
reject Eskom’s application for a 32% tariff increase.
Sun spoke during a virtual hearing on Eskom’s tariff application request for 2024 on Wednesday.
The Eskom CFO Calib Cassim said more than 10% of the increase is driven by depreciation of assets.
“The depreciation of 10.67% which is due to an incorrect regulatory asset base valuation by NERSA in its FY2023 its decision.
“Also, the IPP cost increase of 9.05% due to further energy being sourced from IPPs including emergency procurement.
“Eskom primary energy of 7.85% of which the majority, 6.09% is due only to increase in diesel and fuel oil prices as well as volume increase in OCGT fuel.”
Sun said the increase will simply plunge the city’s residents further into poverty.
“If the Eskom’ application is approved it will further deepen the triple challenge of equality, poverty, and unemployment in the City of Johannesburg.
“The proposed increase will negatively impact business and economic development. We ask Nersa to reconsider and encourage Eskom to seek other options.”
City Power Pricing & Tariffs Manager Frank Hinda said instead of 32%, Nersa should grant Eskom an 18% increase.
“We looked at the written application as well as the revised application from Eskom, and they should be given a limited increase of 18% at most.”
The DA’s Ghaleb Cachalia added that people cannot be made to pay for electricity they do not get.
“Nersa should ensure that Eskom is not rewarded for keeping South Africa in the dark. The honest truth is that South Africans cannot be made to pay more for electricity that they do not have.”
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