EFF REJECTS NERSA'S APPROVAL OF A 9.61% ELECTRICITY HIKE

24 February 2022

The Economic Freedom Fighters rejects the anti-poor decision by the National Energy Regulator of South Africa (Nersa), to grant a 9.61% increase to the cost of electricity.

In a context of depressing levels of unemployment, a dwindling economy and unprecedented increases to the cost of living, an increase in the cost of electricity is a cruel addition to the misery of the poor.

The increase, which is lower than the ridiculous request by Eskom which was 20.5%, is by no means a reprieve, and means that low-income, black households will struggle to make ends meet and small-business which are still reeling from the COVID-19 pandemic will suffer.

It is patently clear that Andre de Ruyter has no believable plan to steer Eskom on the course of recovery, and the presence of Independent Power Producers is having the exploitative effect the EFF had predicted.

We have long said that the privatization of energy generation and distribution will come with an increase in the costs of electricity, because the private sector's sole obligation is to accumulate profit for itself.

This means that it is willing to provide electricity to the wealthy few at exorbitant prices, without any concern for the developmental objectives of South Africa, so long as profit targets are met.

Whether poor communities can afford electricity is of no concern to the private sector, because its mandate is not to the people, in the way an entity such as Eskom would have if it was under capable state control.

This hike comes in a context where the nation is still subjected to rolling blackouts and insecurity around electricity supply.