The decision by South Africa’s National Energy Regulator (Nersa) to increase electricity tariffs by 18.65% has angered South Africans and political parties.
Democratic Alliance (DA) shadow minister of public companies Ghaleb Cachalia, who labeled the increase as “an official sanction of robbery against consumers”, asked South Africa to stand up and say “enough is enough”.
DA leader John Steenhuisen has also written to President Cyril Ramaphosa, asking for an important meeting on Eskom and the growing power crisis.
“These rate hikes are now throwing fuel on the fire and the DA believes that this cannot be done any longer. The party will explore the option of mass action against the ANC-led government that cannot,” Cachalia said in a statement.
“As the ANC government failed to address South Africans from the high cost of living, Nersa made the ill-considered decision to allow Eskom to charge more money from consumers for products it could not deliver. In the circumstances, the tariffs were untenable.
Read more: Nersa approves 18.65% increase in electricity tariffs for Eskom
Eskom needs to fix operational challenges
ActionSA leader Herman Mashaba called on Eskom to fix operational challenges and introduce new generation capacity.
“A workable solution must be put in place because South African ratepayers cannot continue to pay for the ongoing mismanagement of power,” said Mashaba.
“Eskom’s actions must be depoliticized and the involvement of Independent Power Producers must continue with a sense of urgency.”
This is the pinnacle of ‘delela’ in business
Build One South Africa leader Mmusi Maimane says Eskom’s electricity tariff hikes have reached the level of least respect for families and businesses.
“We pay more for electricity, but the government pays less. The most frustrating thing is that ministers don’t feel sick and can drink champagne in Davos, then here we are paying for generators.
GOOD party secretary general Brett Herron said the increase in electricity tariffs would be a very bitter pill as Eskom needed more revenue to cover operating costs and debt.
“For consumers – homes and businesses – it’s a triple whammy. Eskom’s inability to provide a continuous supply of electricity has serious economic consequences and now we have to pay more for what we get. Then there’s the municipal mark-up on electricity rates. Municipalities rely more on revenues from electricity sales to balance their budgets.
ALSO Read: Eskom, Nersa settlement could cost consumers dearly
“Now is the time for municipalities to reduce operational costs, reduce excess and waste, and rely on revenues from electricity sales. Electricity is a basic service that should not be unaffordable for households.
According to Herron, the longer it takes to stabilize Eskom, the longer power outages will continue to damage the economy and efforts to reduce poverty and inequality.
Eliminate debt
Meanwhile, Freedom Front Plus has slammed the consideration of eliminating Soweto’s electricity debt.
“These actions reinforce the culture of not paying for electricity and directly contribute to the huge increase in electricity prices, like the 18.65% announced by Nersa today.”
FF Plus said the increase in electricity rates was “unrelated” to the economic reality in the country.
“This will have the biggest impact on the agricultural sector, like other business sectors in the country, already struggling to survive due to the lost burden.
“The ANC has paid almost no attention to the poor living in the cities and informal settlements for the past 30 years.”
READ ALSO: Eskom move to Mantashe department ‘like rearranging deck chairs on Titanic’
Compiled by Vhahangwele Nemakonde