The Democratic Alliance (DA) condemns the National Energy Regulator’s (NERSA) decision to raise electricity tariff hikes by an average of 3.5% above inflation for Eskom’s revenue application for the next 3 years. This increase is to commence on 1 April 2019, 2020 and 2021 by 9.41%, 8.1% and 5.22% respectively.
With the country under pressure from increasing fuel costs, South Africans are struggling under a weight of tax burdens placed on it through ANC mismanagement, collusion, corruption and wastefulness in our State-Owned Entities, departments and municipalities. This large increase in the electricity tariff will eat into the already diminished incomes of the poor and lower income groups. Over a period of 10 years from 2007 to 2017, Eskom’s electricity prices have increased by about 356%, whilst inflation over the same period was 74%.
It will also have a detrimental impact on small businesses, manufacturers and intensive electricity users, placing a handbrake on economic growth and job creation.
Furthermore, the DA believes that Eskom should focus its resources on debt collection from municipalities that owe them money, rather than spending their funds on court cases, which aim to increase electricity tariffs for those who are already paying and meeting their bills.
Consumers of electricity should not be forced to foot the burden for poor project management and build quality at the Kusile and Medupi power plants, for years of corruption at Eskom and a bloated workforce.
The DA is leading the way forward in efforts to bring down the price of electricity. Government should allow metropolitan municipalities with a proven history of good financial governance and electricity reticulation management to trade with electricity generators directly, allowing them to buy electricity straight from the source.
The DA will continue to fight for a greener, more affordable and competitive electricity sector for all South Africans.
Natasha Mazzone MP
DA Shadow Minister of Public Enterprises
The following two tabs change content below.