Photo by Gallo Images/Brenton Geach
The City of Tshwane has rejected the electricity tariff price hike proposed by Eskom.
While the National Treasury guidelines suggested an increase of 8.5%, Eskom made a submission to the National Energy Regulator of South Africa (Nersa) requesting a series of double-digit increases over the next three years.
According to a statement released by the City on Monday, Eskom has requested a 20.5% increase for the 2022/23 financial year, followed by a 15.07% increase the following year and a 10% increase the year after that.
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Tshwane mayor Randall Williams has expressed concern regarding this hike and says it will have a “dramatic and negative” effect on residents, businesses and the City.
“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,” he says.
“While we acknowledge that Eskom is having financial difficulties and is working towards turning around its business model, it cannot shift this responsibility to consumers,” says Williams.
He also adds that price hikes are no guarantee that load shedding will come to an end.
A similar incident occurred in 2017 when Eskom wanted its clients to pay an average of nearly 20% more for electricity and proposed that municipalities pay 27.3% more for bulk electricity purchases.