Residents in Tshwane are worried about Eskom’s 20.5% electricity price increase application for this year.

The National Energy Regulator (Nersa) is expected to make a decision by February 25 on the proposed increase to be implemented in April.

Rekord spoke to some residents and business owners on their views on the hike.

Pretoria resident Sean James said the hike would be devastating and have a ripple effect on the overall markets.

“We recently had price increases on rates and taxes and this additional cost is concerning,” he said.

Cost of living was fast becoming unaffordable, he said.

“The cost of the increase will be transferred to food costs and other things. Everybody will feel it, from the poor of the poor to the middle-class working people.”

With some people working from home since the Covid-19 outbreak hit, James said the electricity increase would result in more expenses and put more pressure on households.

“The salaries do not go up because companies are under pressure and yet the expenses increase.

“It feels like they are beating down someone on their knees, there is just too much the man on the street is dealing with.”

Tax payers would bare the brunt whether they liked it or not, James said.

“If maybe they said it was just Eskom who is facing issues this would be better, but everything is falling apart. The streetlights are not working, there are potholes on the road and crumbling Eskom infrastructure, yet we pay taxes.”

The Judicial Commission of Inquiry into allegations of the State Capture report found that serious damage was committed at Eskom in 2014 and 2015 after executive and board positions were forced to resign and were substituted by individuals associated with the Gupta family.

While the government entity struggles with corruption, James said this created a trust deficit between residents and the government.

“If maybe there was more transparency, accountability and zero tolerance of nonsense then people would be more open to the increases.”

James said he believed going off-grid was also difficult.

“It is all good and well for people who are wealthy and live in estates that can afford to put up solar energy systems or generators, but the truth is many people cannot afford to go off the grid.”

He said he currently paid between R1 600­ and R1 800 per month in rates and taxes and only anticipated for this to grow.

The Minister of Mineral Resources and Energy, Gwede Mantashe has recently warned that the reported tensions between Russia and Ukraine might result in huge fuel increases.

Schneider told Rekord that she had to start a new business after she and her husband lost their jobs during the first hard lockdown in 2020.

“I had to start a new career selling coffee from a mobile caravan,” she said.

“Everything is going up without thinking about the losses people had during Covid.

“With another Eskom hike, I am not sure if this new business will be able to survive.”

Schneider said she continues to work hard on her caravan and a coffee shop.

“It is just ridiculous, we as the tax payers must just keep on paying for all the huge companies’ incompetence, neglect and stealing.”

The increase has not only received unwelcome responses from residents but also politicians.

Mayor Randall Williams rejected the proposed increase describing it as “exorbitant and having a detrimental effect” on residents.

Eskom CFO Calib Cassim attributed factors affecting electricity sales to national economic growth; commodity prices; structural changes to the economy (eg reduction of mining and manufacturing and growth in services); technological changes; electricity intensity levels; and population growth.

The municipal consumers electricity tariff changes is set to commence from July 1.