Eskom’s electricity tariff increase of 16% from April while the supply remains unreliable shows South Africans are getting a raw deal from the national power generator.
So says IRR Chief of Staff John Endres in reaction to this week’s high court ruling, which clears the way for the April increase.
The ruling allows Eskom to recover R10 billion it has spent from consumers, and follows the agreement on tariff increases between Eskom and the National Energy Regulator of South Africa (Nersa).
Nersa had previously appealed a ruling in July 2020 that would have allowed Eskom to boost its revenues by R69 billion over the next three years.
Endres comments: ‘Since load-shedding started in 2007/8, the cost of electricity has skyrocketed. It has far outpaced any increases in people’s incomes.
‘Yet even though we are paying Eskom more money each year, we still don’t have reliable electricity. South Africans are getting a raw deal, and the latest proposed increase – in an economy in deep recession, with millions out of work – merely adds insult to injury.’
Eskom, with a debt estimated at R464 billion, has stated on numerous occasions that tariffs are not enough to cover its costs.
The IRR has drawn up an Eskom Recovery Plan with a list of proposals aimed at making a start on solving the crisis at Eskom. The document is to be sent to Minister of Energy Gwede Mantashe.
South Africans are encouraged to sign the IRR’s #PowerToThePeople petition here.