Tshwane communities to feel pinch as Eskom tariffs increase, mayor warns

Pretoria residents and businesses are set to feel the pinch of Eskom’s 18,65% tariff increase, Tshwane mayor Randall Williams has warned.

Mayor Randall Williams said the approved tariff hike by the National Energy Regulator of South Africa (Nersa) will have a “detrimental effect” on ratepayers from April 2023.

“The Tshwane multiparty coalition government would like to express its disappointment in the Nersa in granting Eskom this electricity tariff increase.”

Williams said the metro had always been opposed to Eskom’s price increases as residents “would not be able to afford the higher rates”.

He warned the metro could face an increase in illegal connections as the cost of electricity would be unsustainable for residents and businesses, especially those with lower incomes.

He said an increase in illegal connections would result in revenue losses for the metro, especially when it was working hard on improving its finances.

“This tariff increase will have a detrimental effect on Tshwane residents and businesses, and the financial sustainability of the metro, which is already in a precarious state.”

Williams said electricity was already a major production cost for businesses, especially within Tshwane’s manufacturing and industrial hubs.

“An increase of this magnitude will significantly raise the cost of doing business in Tshwane.

“[It] will lead to a massive loss of revenue for the metro and job losses for our residents.

“The metro believes that Eskom should be limited to single-digit increases. This will incentivise investment and stimulate growth that is required by our economy to tackle unemployment and poverty, and to ensure that the Tshwane is positioned to provide sustainable service delivery.”

Eskom spokesperson Sikonathi Mantshantsha said the state-owned enterprise welcomed the Nersa decision for the financial year 24/25.

Mantshantsha said Eskom was apologetic to consumers for the severe extent of load-shedding and its impact on individuals and businesses.

He said Eskom was attempting to minimise load-shedding as this was its highest priority.

“Eskom recognises the pressures this determination will place on consumers.”

Eskom CFO Calib Cassim said Nersa’s decision would positively contribute to Eskom’s financial sustainability.

“The revenue determination of R319-billion and R352-billion for the 2024/5 financial years will allow a further migration towards a price level that reflects the efficient cost of producing electricity.

“Every effort needs to be made to improve the energy availability factor at Eskom power stations. The shortage in capacity due to both Eskom’s performance and the delays in the independent power producers projects needs to be addressed.”

DA leader John Steenhuisen has planned a protest at ANC headquarters at Luthuli House in Johannesburg on January 25 against South Africa’s electricity crisis.

“It is at Luthuli House where corrupt tenders were handed out, including for the ill-fated construction of the Medupi and Kusile power stations that have cost our country so dearly,” he said.

“We are fed up with paying for ANC corruption and mismanagement. We do not accept, and we cannot afford, the 18,65% increase this year or the 12,74% next year, which is a total increase of 33.77% over the next two years.”

“Households are battling to put food on the table. Businesses are struggling to pay their staff. Stage 6 load-shedding is costing South Africa between R4 and R6 billion per day.”

President Cyril Ramaphosa said he deeply regretted the current energy situation nationwide and was working with the national energy crisis committee on stabilising the grid.

“I acknowledge the frustration of households, parents and learners who have commenced the school calendar year facing power shortages. The devastation to small businesses and the adverse impact to the economy remains severe for South Africa’s recovering economy.”

Do you have more information about the story?

Please send us an email to editorial@rekord.co.za or phone us on 083 625 4114.

For free breaking and community news, visit Rekord’s websites: Rekord East

For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram