COSATU opposes Eskom’s proposed electricity price increase

13 November 2015

The Congress of South Trade Unions calls on the National Energy Regulator of South Africa (Nersa) to reject Eskom's proposed electricity price hike that is meant to recover R22.8bn, which the utility allegedly used to avert load shedding. This is another attempt by Eskom to squeeze more money from the already beleaguered workers.

Workers salaries are not keeping up with the escalating food, energy, transport and education costs and therefore they cannot afford to fork out more money for electricity.

Millions of South Africans are unemployed and are living in extreme poverty and the country’s economy is limping. Any increase in the price of electricity will worsen an already worse situation. This will also have negative implications for the economy and will likely result in further job losses.

We refuse to have workers bullied into paying for the mistakes of others’. Eskom’s problems are self inflicted because they failed to maintain their plants and to build new power stations on time.

Government should pick up the tab and should raise the funds that are needed by the power utility. We have an economy that is already haemorrhaging jobs and the increase in electricity hikes will put more strain on the economy.

Over the last five {5} years ESKOM has repeatedly fleeced workers with electricity price increases that are often four {4} times the level of inflation.  The solution is to build more energy capacity and not to simply make electricity unaffordable for workers.

We also need to increase our renewable energy capacity, e.g. solar and wind energy.  These are cheap, fast, environmentally friendly and safe.  Government must also abandon its un-mandated nuclear energy plans.  If we are still struggling to find R2 billion for tertiary education, how can we afford R1 trillion for nuclear energy?

Statement issued by Sizwe Pamla, COSATU National Spokesperson, 13 November 2015