Eskom's triple-inflation tariff hike to hit the poor and small businesses hardest

Eskom today submitted their electricity tariff hike application of 16% each year for the next five years to the National Energy Regulator (Nersa). This is nearly triple current inflation. 

Inflation-amplifying electricity prices discourage investment in productive, job-creating economic activity. This is particularly true for investment in small businesses, for which electricity is a substantial input cost. 

The increases will also put additional pressure on poor South Africans already struggling to keep their heads above water. 

I will meet with the regulator, Thembani Bukula, this week to urge Nersa not to accept Eskom's proposals.

The DA will participate fully in the public consultation processes between now and February, when Nersa must rule on Eskom's proposal. We will continue our calls for an alternative pricing model in which consumers and businesses are not made to pay for inefficient capital expenditure programmes by a monopolistic state-owned energy provider. 

Eskom seem to pay no mind to the negative consequences of their perpetual quest to squeeze money from ordinary South Africans and potential job-creators. 

The DA expects that Nersa will do the right thing and unequivocally reject Eskom's price-hike request. 

Statement issued by David Ross MP, DA Shadow Deputy Minister of Energy, October 22 2012

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