Massive opposition as Eskom seeks 16% tariff hike
The power utility's consultations to seek an electricity tariff increase has been met with stiff opposition from both business and the general public.
Eskom has been facing a backlash at public hearings about its application for another tariff hike. The power utility is looking for over R22 billion to help keep the lights on. The nationwide hearings started in Cape Town on Monday and will end in Midrand on 5 February.
However, as could be expected, big business and unions, among others, have not taken kindly to Eskom’s application to recover R22.8 billion. The money, said Eskom spokesperson Khulu Phasiwe, was spent during the 2013/14 financial year to avoid or minimise load-shedding.
If the national energy regulator of South Africa approves the parastatal’s application consumers can expect a tariff hike of over 16%. Businessman Sid Peimer, said there was a lack of transparency at the parastatal. “The overuse of gas turbines probably reflects a combination of poor demand forecasting and breakdowns in the coal-fired power stations.”
Farmer Carl Opperman also opposed Eskom’s request. “At the end of the day, we cannot afford these increases. Not with the drought and the economic climate we are in at the moment,” he said. However, the utility said some of the submissions were loaded with emotion and not balanced.
Said resident Pamela Sekoma: “Good luck to Eskom as they seek to increase the tariffs by as much as 16%. They seem to forget that this will affect already-suffering consumers who barely make ends meet. Let it be a reasonable percentage they require and maybe they will get it,” she said.
For Lorraine Majimisi the crux of the matter lies in putting the Eskom house in order. “In order for Eskom to run profitably and stop seeking exorbitant electricity hikes, they should put their house in order. For instance they can cut back on the salary bill and ensure that any Eskom employee truly deserves to be there,” she said.
Phasiwe said no load-shedding was anticipated in the near future. “We are progressing well with our scheduled maintenance of our power generating plant. We will continue supplying the country’s electricity needs without any load-shedding well into the year,” he said.
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