GARDEN ROUTE | KAROO NEWS - Anton Bredell, Western Cape Minister of Local Government, Environmental affairs and Development Planning, is urging all municipalities in the Western Cape to add their voices in objecting to Eskom’s application to the National Energy Regulator (Nersa) for a 20,5% hike in electricity tariffs.
If the tariff increase is approved, local authorities will have to pass this increase on to end consumers.
Since the start of the energy crisis in 2008, the country has seen the cost of electricity increase by 175% whereas the sales from electricity have dropped by 14.7%.
The increase in electricity prices has far surpassed annual inflation increase over the same period. Tariff increases since 2008 has also been substantially above inflation, except for the 2017/18 financial year.
Compounding the matter is that Eskom is still struggling to meet demand and rolling blackouts has become a feature of everyday life in South Africa, Bredell says.
He says the proposed increase is completely unaffordable in the current economic climate.
“Passing such a huge tariff increase onto end consumers will effectively price people out of their homes and businesses. We cannot make law abiding and tax paying citizens foot the bill for Eskom’s historic challenges.”
Bredell says local governments should plan and budget carefully to prevent rate paying clients from disinvesting in local economies. As such it is important that the public is aware where the pressures of cost increases are coming from.
“In the Western Cape we have a good working relationship with Eskom, but in this case, we have to say, with great conviction, that the proposed increase cannot be supported.”
He says more should be done to ensure a better collection rate by Eskom.
“Eskom, but also some municipalities, have a bad track record when it comes to payment collection from electricity users. We cannot expect law abiding consumers to continue to absorb these additional exorbitant costs.”
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