Mabuza defends Eskom’s proposed 20% tariff hike

This after the embattled power utility applied to the National Energy Regulator of South Africa (Nersa) for a 20.5% hike in electricity tariffs in 2022.

The energy regulator must make a decision by February.

If the power utility gets its way, residents will be faced with much bigger bills next year.

Mabuza, who leads the political task team on Eskom, appeared at the National Assembly on Thursday where MPs asked him to account for the utility’s financial constraints and failing infrastructure. 

Mabuza said consumers would have to carry the cost of Eskom’s maintenance work. 

“It’s becoming more and more expensive to run these old plants. The maintenance of these plants is very costly to Eskom and of course, when there are unplanned outages, Eskom will have to activate some the power stations that are powered by diesel and in some instances pump water for some of our hydro power stations.”

Mabuza added Eskom’s monopolisation of the market is an added burden to the business.

“If there was competition, I’m sure prices of electricity will come down but for now, it is only Eskom that is carrying the pressure, pulling all the old power plants which are very costly to maintain and of course, it becomes very costly for the consumers to consume electricity,” he added.

He believes self-generation will help alleviate the country’s energy crisis. 

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