Tshwane rejects proposed Eskom tariff hike
Tshwane Mayor Randall Williams says the city rejects what it believes to be excessive tariff price hikes by Eskom.
In statement released on Monday, Williams said the hike will have a severe impact on the city’s residents.
“They are exorbitant and will have a detrimental effect on Tshwane residents and the financial sustainability of the city.”
Eskom has approached the National Energy Regulator of South Africa to request a 20,5% increase for the 2022/23 financial year, followed by a 15,07% increase next year and a 10% increase the year after.
“Should the three proposed price increases go ahead, electricity purchased from Eskom in three years’ time will be almost 50% more expensive than it currently is, which will have a dramatic and negative effect on residents, businesses and the City,” said Williams.
He adds that the price hikes is no guarantee that load shedding will come to an end.
“The unfortunate reality is that even with these proposed excessive price hikes, Eskom services are not guaranteed as residents and businesses continue to experience regular electricity outages.
“For many businesses, electricity is a major input cost, especially within the manufacturing and industrial hubs of Tshwane. Such substantial increases will significantly raise the cost of doing business in Tshwane, driving costs higher.
“The city believes that, in line with the National Treasury guidelines, Eskom should be limited to single digit increases.”
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