Municipality tackles tariff increase

THE eThekwini Municipality has confirmed that it does not support the proposed hefty electricity tariff increase. According to a statement issued by eThekwini Mayor, James Nxumalo, the municipality has noted submissions by Eskom for a further review of electricity tariffs increases, which is in addition to the 14.25 per cent that has already been granted by energy regulator, NERSA. It has been reported that if the request is granted it would push the total electricity increases up to 25.3 per cent.

Nxumalo said the increase could have far-reaching consequences, and would negate the municipality’s efforts to fast-track development and service delivery.

“We believe that the proposal could leave the poorest of the poor worse off, have negative consequences in our effort to attract investments to our city and lead to an increase in the theft of electricity, since it would become a very expensive commodity which could be out of reach for the poor. While we understand the situation that is currently faced by Eskom and we are working together with the utility to maintain the power grid, we however do not believe that such a hefty increase would be the correct solution. As part of organised local government, we will work together with the South African Local Government Association (SALGA) to address the matter through appropriate intergovernmental platforms.

“As the municipality, we are participating in efforts to mitigate the effects of the energy shortage. We had a round table discussion on Friday with stakeholders, including businesses, to come up with joint strategies on how to effectively deal with the energy challenges that we are facing. This is part of the business continuity strategy that was recently adopted by council to ensure that load-shedding does not have adverse effects on business operations and our ability to deliver services to residents.”