City of Tshwane Mayor Randall Williams has warned that Eskom’s increased electricity tariffs could lead to an escalation of illegal connections.
Eskom has welcomed the latest electricity tariff increase approved by South Africa’s National Energy Regulator (Nersa).
On Thursday, Nersa announced that it has increased electricity tariffs by 18.65% for Eskom in the 2023/2024 financial year.
Williams said the increase for the financial year 2023/24, which will kick in this April, will be unsustainable for residents with lower incomes and will ultimately result in a loss of revenue for the City and Eskom.
READ MORE: Massive electricity price hikes on the cards for SA
“While for many businesses, electricity is a major cost of production, especially in the manufacturing and industrial centers of Tshwane. This rate increase will increase the cost of doing business in Tshwane.
“These two combined scenarios will lead to a massive loss of revenue for the City and job losses for our residents,” said Williams in a statement.
Oppose Eskom’s increase
He also said that the city has always opposed Eskom’s price increases because residents cannot afford them, especially with the unlimited phase 6 load shedding.
Williams highlighted that the price increase will have a detrimental effect on Tshwane residents and businesses, and the financial sustainability of the City.
“The City believes that Eskom should be limited to single digits. This will incentivize investment and stimulate the growth that our economy needs to tackle unemployment and poverty, and to ensure that the City is positioned to provide sustainable services to all Tshwane residents.
Ramaphosa ‘concerned’
Meanwhile, Ramaphosa is worried about the rising cost of living, Presidential spokesperson Vincent Magwenya said while briefing the media on Thursday.
The president’s hands are “tied” when it comes to asking South Africans to pay more for electricity as Eskom struggles to keep the lights on, Magwenya said.
“President Ramaphosa is very sorry for the current energy situation which has placed the country in stage 6 load shedding. The President acknowledges the frustration of households, parents and students who have started the school calendar year facing a lack of electricity.
“The damage to small businesses and the negative impact on the economy remains severe for South Africa’s recovering economy,” Magwenya said.
NOW Read: ‘My hands are tied’ says Ramaphosa on electricity price hike