The City of Johannesburg Executive Mayor, councillor Herman Mashaba is concerned about Eskom’s tariff increase. He feels it is unacceptable and will increase the burden on ratepayers’ monthly budget.
“I have noted the decision by the National Energy Regulator of South Africa (Nersa) to grant Eskom a hike of 9,41 per cent, 8,1 per cent and 5,2 per cent for the next three financial years, below Eskom’s application for a 17,1 per cent hike for 2019 to 2020, 15,4 per cent for 2020 to 2121 and 15,5 per cent for 2021/ 2222,” he said.
Mashaba said the City, among many other stakeholders across the country, had made representations to Nersa, stressing the concerns of the residents and businesses in respect of the then proposed tariff increase. Around 45,2 per cent of residents live below the poverty line, barely surviving. Just over 900 000 of the residents are unemployed and the national economic growth outlook remains depressed. Given the poor state of the national economy and the massive corruption at Eskom itself, the City, on their behalf of our residents, had argued that the proposed tariff increases were simply unacceptable.
He also mentioned that, while the City is appreciative of Nersa’s willingness to hear the voice of our residents, businesses and all South Africans at large, it is still our view that the present increase serves only to reward the maladministration and corruption that have gutted Eskom.
This is made worse when one considers the deteriorating economic conditions all South Africans face, as evidenced by rapidly rising costs of living. For the poorest members of the society, life is set to become that much harder as a result of this increase. In addition, the rise in tariffs will also continue to place struggling businesses under strain, hampering the prospects for economic growth.
“Ultimately, we hope that Nersa will do all within its powers to ensure that serious reforms are implemented at Eskom; reforms which will cut costs and end corruption once and for all at Eskom. This includes applying consequence management for those who have been responsible for the mass mismanagement and looting at the organisation. Those who are up to their knees in corruption must face the full might of the law, including getting the money stolen from the entity returned to South Africans,” he concluded.
