Toti rejects proposed 15% Eskom hike

Amanzimtoti electricity users could be subjected to three years of steep, consecutive 15% electricity tariff increases from this year, if embattled Eskom has its way.

The National Energy Regulator of SA (Nersa), which Eskom makes its application to, held a Durban public hearing about the matter on Thursday, 17 January to consider objections and comments.

Eskom has applied to increase electricity tariffs by 15% annually over the next three years, in a bid to recover revenue totalling R762-billion from electricity users. This follows Nersa’s previous approval of a 4.1% increase for this year, which will come into effect in April.

The Durban South Business Forum (DSBF) believes Eskom’s demands will not only exacerbate debt owing by municipalities but also force more paying customers to move off the grid and this will be a severely undue burden for users.

“Eskom tells Nersa that it’s in a debt spiral but this is old news, as it is the same excuse year after year and using this as a cover for their incompetence to manage the organisation,” said DSBF president, Aart Verrips.

“The South Africa Local Government Association (SALGA) is sceptical that a double-digit electricity price hike will pull Eskom out of its debt trap. The truth is Eskom has been singing the same tune for years and consumers can’t be made to repeatedly bear the brunt. The burden hanging over South African customers is increasing daily and Eskom is labelled negative as an organisation in a downward spiral.

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Municipalities owe the power utility almost R20-billion and SALGA’s electricity expert Nhlanhla Ngidi said this will worsen when consumers can’t afford to pay.”
Verrips added that struggling low income earners and poor people revert to paraffin as an alternative forms of energy from the grid.

For those individuals and business owners who can afford Eskom power, alternative energy like solar, wind and other energy sources that can be used are explored and implemented on a daily basis with the aim to go off the grid, doing a capital layout now to save monies and lots and lots of frustration and disappointment in the near future. “The local business industry recommends Nersa should not grant more than an inflation-based hike,” he said.