The Federation of Unions of South Africa (FEDUSA) is concerned over the 12.69 per cent average electricity tariff increase proposed for the 2015 / 2016 financial year announced recently by the National Energy Regulator of South Africa (NERSA).

“This above-inflation electricity tariff increase would have a negative impact on working people, the business sector and would put a further dampener on future inclusive economic growth which will make South Africa a less competitive global player,” said FEDUSA President Koos Bezuidenhout.

NERSA has approved Eskom’s plans to recuperate losses after it had under-recovered money during the second multiyear price determination (MYPD) control period between 2010 and 2013.

The regulator approved the implementation plan of the Regulatory Clearing Account (RCA) balance of R7 818 million for Eskom in July 2014 and will be a once-off recovery from the standard tariff customers and other Eskom customer categories.

Consumers will, in essence, pay an additional 4 per cent over and above the 8 per cent increase approved in February 2013.

FEDUSA President Mr Koos Bezuidenhout said that it is imperative to stabilise electricity production and supply, as it remains a critical key driver of economic growth, which, if not responsibly managed, could lead to disinvestment in / and ultimately contraction of the South African economy and concomitant job losses.

“It is important to recognize that society is paying an extraordinarily high price for the lack of proper coordination and planning on the side of government who failed to provide responsible leadership concerning infrastructure investment and proper implementation,” concluded Bezuidenhout.

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