The Organisation Undoing Tax Abuse (OUTA) salutes South Africans for their unprecedented participation in the public process which helped cut Eskom’s tariff increase down to 5.23%.
This means the average price stays under R1/kWh.
“This is a bittersweet victory for civil society. It’s much better than Eskom’s requested 19.9%, but we believe it should have got 0%,” says Ben Theron, OUTA’s Chief Operating Officer.
“We cited an ongoing decline in efficiencies, maladministration and corruption, combined with a lack of leadership accountability over the past decade, which had given rise to unwarranted increases for far too long.”
Nersa approved R190.348bn allowable revenue for Eskom, meaning an average increase of 5.23% and taking the average price of electricity from 89.13c/kWh to 93.79c/kWh. Eskom had asked for R219.514bn in revenue, which would have meant a 19.9% price increase taking it to an average of 106.87c/kWh.
OUTA believes that Eskom does not listen fully to NERSA’s advice on costs and NERSA does not listen fully to the public on corruption and affordability.
“More than 23 000 people participated in the public engagement this year. It is critical for people to get organised and participate in the government’s decision-making processes and hold government accountable. This is one of the fundamentals of our Constitution and we hope to see more active citizens in the new year,” says Theron.
Ominously, today’s pricing decision is forward looking (for an increase to Eskom customers from April 2018) and does not include Eskom’s regulatory clearing account applications for the last three years which